Question
The market has an expected rate of return of 12.8 percent. The long-term government bond is expected to yield 4.5 percent and the U.S. Treasury
The market has an expected rate of return of 12.8 percent. The long-term government bond is expected to yield 4.5 percent and the U.S. Treasury bill is expected to yield 3.4 percent. The inflation rate is 3.1 percent. What is the market risk premium? A. 3.4% B. 9.7% C. 6.3% D. 8.3% E. 9.4%
*please show work using formula*
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
6th Canadian edition
1259453146, 978-1259453144
