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OA. O O Last year, an investor acquired $38,000 worth of Oil Town stock, purchased $11,000 of long-term government bonds, and invested $8,000 in U.S.
OA. O O Last year, an investor acquired $38,000 worth of Oil Town stock, purchased $11,000 of long-term government bonds, and invested $8,000 in U.S. Treasury bills, considered the risk-free asset. Over the course of the year, he earned a return of 11.5 per cent from Oil Town stock, 6.3 per cent from long-term government bonds, and the risk-free rate of 3.9 per cent, from his investment of U.S. Treasury bills. What was the risk premium on Oil Town's stock for the year? B. O.C. O D. E. 2.4 per cent. 4.7 per cent. 7.6 per cent. 5.2 per cent. 8.2 per cent.
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