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QUESTION 4 Last year, an investor acquired 5380,000 worth of Arcandor stock, purchased $110,000 of long-term government bonds, and invested 580,000 in US Treasury bills,
QUESTION 4 Last year, an investor acquired 5380,000 worth of Arcandor stock, purchased $110,000 of long-term government bonds, and invested 580,000 in US Treasury bills, considered the risk-free asset. Over the course of the year, he earned a return of nine percent from Arcandor stock, five percent from his long-term government bonds, and the risk free rate of three percent, from his investment on US Treasury bills What was the risk premium on Arcandor's stock for the year? 82 percent 12 percent 4.7 percent rnt 2 percent
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