Question
In 2000, the S&P 500 Index returned 11.5% and the yield on a T-bill was 4.2%. Which of the following is correct with respect to
In 2000, the S&P 500 Index returned 11.5% and the yield on a T-bill was 4.2%. Which of the following is correct with respect to the market risk premium?
| The market risk premium must have been zero. | ||
| The market risk premium must have been negative. | ||
| The market risk premium must have been positive. | ||
| Unable to answer without more information. |
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Basic Finance An Introduction To Financial Institutions Investments And Management
Authors: Herbert B. Mayo, Michael J Lavelle
13th Edition
0357714741, 978-0357714744
