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 2 .

The average annual return on the S&P 500 index from 1986 to 1995 was 12.30%. The average annual T-bill yield during the same period was 4.60%. What was the market premium during 10 years?

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