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Which of the following statements is correct when Treasury bills yield 7.5% and the market risk premium is 9.5%? A. The S&P 500 would be

Which of the following statements is correct when Treasury bills yield 7.5% and the market risk premium is 9.5%?

A. The S&P 500 would be expected to yield about 8.50%.

B. The S&P 500 would be expected to yield about 9.50%.

C. The S&P 500 would be expected to yield about 12.68%.

D. The S&P 500 would be expected to yield about 17.00%.

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