Determine risk premium for common stocks
In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10%, and Treasury bills offered 7%, the risk premium for common stocks was:
(a) 1%(b) 3%(c) 8%(d) 11%
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In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10%, and Treasury bills offered 7%, the risk premium for common stocks was?
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