If the future return on common stock is 19% and the rate on T-bonds is 11% then

Question

If the future return on common stock is 19% and the rate on T-bonds is 11% then the current market risk premium will be

Options:

A . 30

B . 0.3

C . 0.08

D . 8

Answer: Option C
Answer: (c).0.08

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