16. In a year in which corporate bonds offered an average return of 10%, treasury bonds offered an average return of 6%, common stocks offered an average return of 16% and Treasury bills offered 2%. The market risk premium was: ______%.
18. You have just retired with savings of $9 million. If you expect to live for 59 years and to earn 10% a year on your savings, how much can you afford to spend each year (in $ dollars)? $_______. (Assume that you spend the money at the start of each year.)