4. Risk premium (S7.1) Here are inflation rates and U.S. stock market and Treasury bill returns between
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4. Risk premium (S7.1) Here are inflation rates and U.S. stock market and Treasury bill returns between 1929 and 1933:
Year Inflation, % Stock Market Return, % T-Bill Return, %
1929 –0.2 –14.5 4.8 1930 –6.0 –28.3 2.4 1931 –9.5 –43.9 1.1 1932 –10.3 –9.9 1.0 1933 0.5 57.3 0.3
a. What was the real return on the stock market in each year?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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