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Risk Premium the Annual Return on the S&P 500 Index

Question 39

Multiple Choice

Risk Premium The annual return on the S&P 500 Index was 12.4 percent. The annual T-bill yield during the same period was 5.7 percent. What was the market risk premium during that year?


A) 5.7%
B) 6.7%
C) 12.4%
D) 18.1%

Correct Answer:

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