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Sindrei [870]
1 year ago
13

The annual return on the s&p 500 index was 12.4 percent. the annual t-bill yield during the same period was 5.7 percent. wha

t was the market risk premium during that year?
Business
1 answer:
EleoNora [17]1 year ago
7 0

The annual return on the s&p 500 index was 12.4 percent. The annual t-bill yield during the same period was 5.7 percent. Then the market risk premium during that year will be 6.7 percent.

The marketplace risk premium is the distinction between the expected go back on a market portfolio and the chance-unfastened price. The marketplace threat top fee is the same as the slope of the SML, a graphical representation of the CAPM.

To calculate market risk premium use the formula

Market risk premium = ( Market rate of return ) - ( Risk-free rate of return )

Market risk premium = 12.4 - 5.7 = 6.7%

Therefore Market risk premium is 6.7 percent ( 6.7 % )

The annual return back is the go-again that funding presents over a period of time expressed as a time-weighted annual percent. Assets of returns can embody dividends, returns of capital, and capital appreciation.

Learn more about market risk premium here   brainly.com/question/24001280

#SPJ4

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What idea did both the Regulators and Stamp Act Congress share? a. Colonial governors should make decisions unilaterally. b. Boy
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Which of the following is a difference between customized services and standardized services?
Verizon [17]

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The correct answer is the letter a. Standardized services are more efficient and cost less than personalized services.

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5 0
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Holly owns a dance studio. To improve sales of dance classes, she is reviewing how her marketing team could update the company's
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b. website layout

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6 0
3 years ago
The FabulousHI Company expects a constant growth in earnings and dividends of 2.5%/year into the foreseeable future. It is expec
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Answer:

a. $26.67

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7 0
3 years ago
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