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

question 58

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 10 years?

• A) 8.2 percent
• B) 7.8 percent
• C) 8.8 percent
• D) 9.8 percent

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