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

question 98

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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?


Definitions:

Celibate Lives

A lifestyle choice where individuals abstain from marriage and sexual relations, often for religious, cultural, or personal reasons.

Shakers

A religious sect known for its communal living, celibacy, and simple lifestyle, named after their practice of ecstatic dancing as part of worship.

Mormons

Members of The Church of Jesus Christ of Latter-day Saints, a religious group founded in the early 19th century by Joseph Smith, known for its unique scriptures including the Book of Mormon.

Oneidas

A member of a Native American people originally from upstate New York, known for their role in American history and as part of the Iroquois Confederacy.

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