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Problem 11-A Risk Premiums Returns on the stock market and Treasury bills are listed in the table below for a five-year period. An investor is
Problem 11-A Risk Premiums Returns on the stock market and Treasury bills are listed in the table below for a five-year period. An investor is deciding whether or not to make an investment in a stock. Given the data presented and a forecasted Treasury bill return of 1.92%, what is the expected return on the stock investment? (Enter your answer as a percent rounded to two decimal places.) Returns (% Stock Treasury Bills Market Index Year 0.88% 0.73 1.01 0.93 1.16 10 " 60% 9.70 11.03 10.16 10.97 4 Expected return
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