Question: Problem 10-5 Risk Premium (LG10-2) The average annual return on an Index from 1986 to 1995 was 10.05 percent. The average annual T-bill yield during

Problem 10-5 Risk Premium (LG10-2)

The average annual return on an Index from 1986 to 1995 was 10.05 percent. The average annual T-bill yield during the same period was 3.25 percent.

What was the market risk premium during these ten years? (Round your answer to 2 decimal place.)

Average market risk premium %

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