Question

If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be

a.

30

b.

0.3

c.

0.08

d.

8

Answer: (c).0.08

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Q. If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be

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