Government of Canada t-bill rate of return is widely used as the risk-free rate of return. If the average rate of return on Government of Canada t-bills is 5.3% and the average rate of return on a Canadian common stock is 11.7%, then the stock's risk premium is:
A) 12.3%
B) 6.4%
C) 17.0%
D) 2.2%
Correct Answer:
Verified
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