Question: The average annual return on the S&P 5 0 0 Index from 1 9 9 6 to 2 0 0 5 was 2 0 .

The average annual return on the S&P 500 Index from 1996 to 2005 was 20.25 percent. The average annual T-bill yield during the same period was 3.65 percent.
What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)
\table[[Average market risk premium]]
 The average annual return on the S&P 500 Index from 1996

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!