Question
P9-2 Risk Premium The average annual return on the S&P 500 Index over the last five years was 9.0 percent. The average annual T-bill yield
P9-2 Risk Premium The average annual return on the S&P 500 Index over the last five years was 9.0 percent. The average annual T-bill yield during the same period was 2.0 percent. What was the market risk premium during these five years?
Average market risk premium = Overall stock market return - riskfree rate
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
