The expected return on the stock market is 12.40% and the risk-free rate is 3.50%. Then...

Question

Question

The expected return on the stock market is 12.40% and the risk-free rate is 3.50%. Then the stock market risk premium is

Answer 1

Answer #1

expected return =risk free rate+market risk premium

market risk premium=(12.4-3.5)

which is equal to

=8.9%

Answer 2

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