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

question 77

Multiple Choice

Risk Premium 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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