Multiple Choice
Assume the return on large-company stocks is currently 11.5 percent.The risk premium on large-company stocks is 8.6 percent and the inflation rate is 2.4 percent.What is the current risk-free rate of return?
A) 2.9%
B) 7.4%
C) 8.4%
D) 10.6%
E) 12.6%
Correct Answer:
Verified
Correct Answer:
Verified
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