8. The interest rate on short-term U.S. government bonds is 4 percent. The risk premium for any...

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8. The interest rate on short-term U.S. government bonds is 4 percent.

The risk premium for any asset with a beta = 1.0 is 6 percent. What is the average expected rate of return on the market portfolio? LO37.7

a. 0 percent.

b. 4 percent.

c. 6 percent.

d. 10 percent.

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Economics

ISBN: 9781259723223

21st Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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