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Problem:

Assume large-company stocks earned 14.1 percent over a period of years. Over that same period, the risk-free rate was 5 percent and the inflation rate was 4.3 percent.

Required:

Question: What was the risk premium on large-company stocks during this time period?

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Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91167864

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