Calculate the equity premium on the following set of data: Stock market return: 12.5% Corporate bond return: 8.2% Short-term T- bills: 4.8% Inflation: 3.1% a. 7.7% b. 9.4% c. 8.2% d. 7.1%
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![Calculate the equity premium on the following set of data:
Stock market return: 12.5% Corporate bond return: 8.2% Short-term T-
bills: 4.8% Inflation: 3.1%
a. 7.7%
b. 9.4%
c. 8.2%
d. 7.1%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09748017-e7eb-4749-ba0a-df317c4d6989%2F45bf9cc5-a3d2-4f53-9b10-a2301226673f%2Frtp3ydu_processed.jpeg&w=3840&q=75)
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