Use the data in Tables 11.1 and 11.4 to answer these questions: Table 11.1 Table 11.4 a.

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Use the data in Tables 11.1 and 11.4 to answer these questions:

Table 11.1

Table 11.4

a. What was the average rate of return on large U.S. common stocks from 1900 to 2017?

b. What was the average risk premium on large stocks?

c. What was the standard deviation of returns on the market portfolio?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 29, 2019 11:02 AM

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Use the data in Tables 11.1 and 11.4 to answer these questions: Table 11.1 Table 11.4 a.

Question:

Average Premlum (Extra return versus Average Annual Rate of Return Portfollo Treasury blls) Portfollo Treasury bills Treasury bonds Common stocks 3.8% 3.8% 5.3 1.5% 11.5 7.7 Portfollo Standard Devlation (%) Treasury bills Long-term government bonds Common stocks 2.9 9.0 19.7

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a For the period 19002017 average rate of ...View the full answer

Fundamentals of Corporate Finance

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