Question: FV Here are the historic returns for various asset classes. What has been the market risk premium? N I/YR PV PMT Small Stocks 89 12.17

 FV Here are the historic returns for various asset classes. What
has been the "market risk premium"? N I/YR PV PMT Small Stocks
89 12.17 -$1.00 0.00 $27,419.32 Large Stocks (S&P500) 89 10.12 -$1.00 0.00

FV Here are the historic returns for various asset classes. What has been the "market risk premium"? N I/YR PV PMT Small Stocks 89 12.17 -$1.00 0.00 $27,419.32 Large Stocks (S&P500) 89 10.12 -$1.00 0.00 $5.316.85 LT Govt Bonds 89 5.67 -$1.00 0.00 $135.18 T-Bills 89 3.47 -$1.00 0.00 $20.58 Inflation 89 2.93 -$1.00 0.00 $13.10 Select one: a. Less than 3% b. 3.0% to 5.0% c. More than 9.0% d. 5.0% to 7.0% e. 7.0% to 9.0% The internal rate of return is the: Select one: a. None of these choices. b. Discount rate that results in a zero net present value for the project. c. Rate of return required by the project's investors. d. Project's current market rate of return. e. Discount rate that results in a net present value equal to the project cost. Both projects A and B are acceptable as independent projects. However, the selection of either one of these projects eliminates the option of selecting the other project. Which of the following terms describes the relationship between project A and project B? Select one: a Unconventional b. Erosion c. Conventional d. None of these choices e. Mutually exclusive

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