Multiple Choice
Assume the market portfolio of common stocks earned 14.1 percent in one year while U.S.Treasury bills earned 4.4 percent and inflation averaged 4.6 percent.What was the market risk premium?
A) 5.1%
B) 9.7%
C) 9.9%
D) 13.9%
E) 14.3%
Correct Answer:
Verified
Correct Answer:
Verified
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