Multiple Choice
Assume inflation averaged 3.2 percent during a period in which U.S.Treasury bills earned 4.3 percent.What was the average real rate of return on large-company stocks if the risk premium on those stocks was 7.4 percent for the period?
A) 8.5%
B) 3.2%
C) .1%
D) 7.5%
E) 14.9%
Correct Answer:

Verified
Correct Answer:
Verified
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