Question
You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent
You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent and the inflation premium is 3 percent.US Treasury bills are risk free. What should be the yield of the US Treasury bills? Use multiplicative form.
A. 5.58%
B. 6.35%
C. 6.09%
D. 5.83%
E. 5.32%
F. 5.06%
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Financial Statement Analysis
Authors: K. R. Subramanyam, John Wild
11th edition
78110963, 978-0078110962
