The market portfolio of common stocks earned 14.7% last year. Treasury bills earned 5.7% on average last
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Question:
The market portfolio of common stocks earned 14.7% last year. Treasury bills earned 5.7% on average last year. The average inflation rate was 4.0%. What was the real risk premium on equities?
A. 5.0%.
B. 9.0%.
C. 6.5%.
D. 12.2%.
E. 18.7%.
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
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