If future return on common stock is 19% and rate on T-bonds is 11% then current market risk premium will be
A. Rs 30.00
B. 30.00%
C. 8.00%
D. Rs 8.00
Answer: Option C
Solution(By Examveda Team)
Current market risk premium = Return on common stock - Rate on T-bonds= 19% - 11% = 8%.
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