Determining the risk premium on large company


Assume large-company stoks earned 13.2 percent over a period of years. over that same period therisk free rate was 4.3 percentand the inflation rate was 4.1percent. What was the risk premium on large company stocks during this time period?

a. 4.8

b. 8.9

c. 9.1

d. 9.6

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Finance Basics: Determining the risk premium on large company
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