Free Prem In Tibia Assume That The Risk-free Rate=5% And Mkt Risk Prem=6%. What Is The Expected Return For The Overall Stock Mkt?

Assume that the risk-free rate=5% and mkt risk prem=6%. What is the expected return for the overall stock mkt? - free prem in tibia

I am confused by this? I need more information?

1 comments:

jeff410 said...

The 11 percent

The premium for market risk is the difference between the expected return on the market and the riskless rate. Thus, the expected return should be 11 percent.

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