Question: The equity risk premium is the difference between the expected return: a. on high-grade stocks and low-grade stocks. b. on stocks and the risk-free rate.

The equity risk premium is the difference between the expected return:

a. on high-grade stocks and low-grade stocks.

b. on stocks and the risk-free rate.

c. on stocks and bonds.

d. on a stock market index and the inflation rate.

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