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The Average Annual Return on the S&P 500 Index from 1986

Question 98

Multiple Choice

The average annual return on the S&P 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. What was the market risk premium during these ten years?


A) 8.2%
B) 7.8%
C) 8.8%
D) 9.8%

Correct Answer:

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