Question
The market's return expectation is 12.6%. Long-term government bonds are expected to yield 4.8 percent, while US Treasury bonds are expected to yield 2.7 percent.
The market's return expectation is 12.6%. Long-term government bonds are expected to yield 4.8 percent, while US Treasury bonds are expected to yield 2.7 percent. The inflation rate is 3.2 percent. What is a market risk premium?
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The market risk premium is the excess return that investors expect to r...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
