Historical returns (1900-2015)suggest that in a year when Treasury bills offered 7.5 the approximate return on portfolio of common stocks should be in the region of:
A) 7.5%
B) 9.3%
C) 15%
D) 18.5%

Name: Historical returns (1900-2015)suggest that in a year when Treasury bills offered 7.5 the approximate return on portfolio of common stocks should be in the region of: A) 7.5% B) 9.3% C) 15% D) 18.5%
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Question

Quizplus · Accepted Answer

7.5% + 7.6% (historical risk premium on common stocks) = 15.1%

Historical Returns (1900-2015)suggest That in a Year When Treasury Bills