The Annual Return on the S&P 500 Index Was 18

question 75

Multiple Choice

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 percent
• B) 11.9 percent
• C) 18.1 percent
• D) 24.3 percent

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Definitions:

Contingent Liabilities

Potential obligations that may arise in the future due to past events, the occurrence and amount of which are uncertain.

Probable

A term used to describe something that is likely to occur or is likely true.