Q400
If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be
A.
19.00%
B.
9.00%
AnswerC.
Rs 9
D.
Rs 19
Answer: Option B
Solution
Answer: Option B
Solution:
Current Market Risk Premium = Future return on common stock - T-Bond = 14% - 5% = 9%.