The S&P 500 has a dividend yield of 2.4 percent.Analysts expect overall dividends to grow at a 5.2 percent annually.Treasury bills yield 3.2 percent.The expected market rate of return is ____ percent and the market risk premium is ____ percent.
A) 10.8;7.6
B) 4.4;1.2
C) 7.6;4.4
D) 10.8;4.4
E) 10.8;5.2
Correct Answer:
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