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

Question 89

Multiple Choice

Risk Premium The annual return on the S&P 500 Index was 18.1 percent. The annual T-bill yield during the same period was 6.2 percent. What was the market risk premium during that year?


A) 6.2%
B) 11.9%
C) 18.1%
D) 24.3%

Correct Answer:

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