Question: In 2000, the S&P 500 Index earned -9.1 percent while the T-bill yield was 5.9 percent. Does this mean the market risk premium was negative?

In 2000, the S&P 500 Index earned -9.1 percent while the T-bill yield was 5.9 percent. Does this mean the market risk premium was negative? Explain.

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The market risk premium is a forwardlooking tool and should always be positive B... View full answer

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