Q805
Treasury yielded by bond is 7% and market required return is 13% then market risk premium will be
A.
2.16%
B.
20.00%
C.
6.00%
AnswerD.
0.53%
Answer: Option C
Solution
Answer: Option C
Solution:
Market risk premium = Market required return - Treasury yielded by bond = 13% - 7% = 6%