Assume large company stocks returned 11 8 percent on average over the past 75 years The risk premium on these stocks was 7 9 percent and the inflation rate was 3 2 percent What was the average nominal risk free rate of return for those 75 years ...

Computation of the Nominal riskfree rate Nominal riskfree ra ...

Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on

Question:

Assume large-company returned 11.8 percent on average over the past 75 years. The risk premium on these was 7.9 percent and the inflation rate was 3.2 percent. What was the average nominal risk-free rate of return for those 75 years?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...