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%
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%
Chapter7: Types And Costs Of Financial Capital
Section7.4: What Is Investment Risk?
Problem 4CC
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Transcribed Image Text: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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