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Problem 10-5 Risk Premium (LG10-2) The average annual return on an Index from 1986 to 1995 was 10.05 percent. The average annual T-bill yield during
Problem 10-5 Risk Premium (LG10-2)
| The average annual return on an Index from 1986 to 1995 was 10.05 percent. The average annual T-bill yield during the same period was 3.25 percent. |
| What was the market risk premium during these ten years? (Round your answer to 2 decimal place.) |
| Average market risk premium | % |
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