If the Average Annual Rate of Return for Common Stocks

question 2

Multiple Choice

If the average annual rate of return for common stocks is 11.7 percent, and 4.0 percent for U.S. Treasury bills, what is the average market risk premium?

• A)15.7 percent
• B)4.0 percent
• C)7.7 percent
• D)Not enough information is provided.

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