Question
The market has an expected rate of return of 10.29 percent. The long-term government bond is expected to yield 4.73 percent, and the U.S. Treasury
The market has an expected rate of return of 10.29 percent. The long-term government bond is expected to yield 4.73 percent, and the U.S. Treasury bill is expected to yield 3.21 percent. The inflation rate is 3.09 percent. What is the market risk premium?
Multiple Choice
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7.08%
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6.78%
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8.33%
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9.73%
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
