The average annual return on the S&P 500 Index from 1996 to 2005 was 13.27 percent. The average annual T-bill yield during the same period was 3.92 percent. What was the market risk premium during these ten years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 23P
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The average annual return on the S&P 500
Index from 1996 to 2005 was 13.27 percent.
The average annual T-bill yield during the
same period was 3.92 percent. What was
the market risk premium during these ten
years?
(Round your answer to 2 decimal places.)
Transcribed Image Text:The average annual return on the S&P 500 Index from 1996 to 2005 was 13.27 percent. The average annual T-bill yield during the same period was 3.92 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)
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