If the Expected Return on the Market Is 16%,then Using

question 35

Multiple Choice

If the expected return on the market is 16%,then using the historical risk premium on large stocks of 8.6%,the current risk-free rate is:

• A) 4.6%
• B) 7.4%
• C) 8.4%
• D) 10.6%
• E) 12.6%