The return on a Government of Canada T-Bill is 9.87%. Given a market risk premium of...

Question

Question

The return on a Government of Canada T-Bill is 9.87%. Given a market risk premium of 5.12%. What is the return on the market?

Answer 1

Answer #1

The market risk premium is given as = Market Return - Treasury Return

Hence, the market return will be = 9.87 + 5.12 = 14.99%

Answer 2

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