Question
The market has an expected rate of return of 9.8%. The long-term government bond is expected to yield 4.5% and the U.S. Treasury bill is
The market has an expected rate of return of 9.8%. The long-term government bond is expected to yield 4.5% and the U.S. Treasury bill is expected to yield 3.2%. The inflation rate is 3.1%. What is the market risk premium?
| A. | 2.2% | |
| B. | 3.3% | |
| C. | 6.6% | |
| D. | 6.4% |
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The Emerging Markets Handbook
Authors: Pran Tiku
1st Edition
0857192981, 978-0857192981
