Exhibit 6-3 Consider the Following Information Concerning Stock Returns and Bond Returns

question 88

Multiple Choice

Exhibit 6-3
Consider the following information concerning stock returns and bond returns over the last 75 years:

-Refer to Exhibit 6-3.Currently,investors want a 12% return on stocks as a whole.Based on this information,what is a good estimate for the current return on Treasury Bills?

• A) 4.10%
• B) 4.40%
• C) 7.20%
• D) 7.60%

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