If the expected return on the market is 8% and the risk free rate is 4% and the expected return is 12%, what is the market risk premium

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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If the expected return on the market is 8% and the risk free rate is 4% and the expected return is 12%, what is the market risk premium ?
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