Risk Premium the Annual Return on the S&P 500 Index

question 111

Multiple Choice

Risk Premium The annual return on the S&P 500 Index was 12.4 percent.The annual T-bill yield during the same period was 5.7 percent.What was the market risk premium during that year?

• A)5.7 percent
• B)6.7 percent
• C)12.4 percent
• D)18.1 percent

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