Examveda
Examveda

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%

D. 0.53%

Answer: Option C

Solution(By Examveda Team)

Market risk premium = Market required return - Treasury yielded by bond
= 13% - 7% = 6%

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