Question: The average annual return on the S&P 5 0 0 Index from 1 9 8 6 to 1 9 9 5 was 1 4 .

The average annual return on the S&P 500 Index from 1986 to 1995 was 14.55 percent. The average annual T-bill yield during the same period was 3.00 percent.
What was the market risk premium during these ten years?

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