Here are inflation rates and stock market and Treasury bill returns between 1996 and 2000: a. What

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Here are inflation rates and stock market and Treasury bill returns between 1996 and 2000:

a. What was the real return on the S&P 500 in each year?

b. What was the average real return?

c. What was the risk premium in each year?

d. What was the average risk premium?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 03:53 AM

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Here are inflation rates and stock market and Treasury bill returns between 1996 and 2000: a. What

Question:

T-Bill Return 5.2 5.3 4.9 4.7 S&P 500 Return Inflation 3.3 1.7 Year 1996 1997 1998 1999 2000 23.1 33.4 28.6 21.0 2.7

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Recall from Chapter 3 that Therefore a The real return on th...View the full answer

Principles of Corporate Finance

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