The market has an expected rate of return of 12.6 percent. the long-term government bond is expected to yield 4.8 percent and the u. s. treasury bill is expected to yield 2.7 percent. the inflation rate is 3.2 percent. what is the market risk premium?
a. 7.8 percent
b. 9.4 percent
c. 9.9 percent
d. 8.5 percent
e. 9.3 percent

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented