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Assume these were the inflation rates and stock market and Treasury bill returns between 1929 and 1933 Year Inflation Stock Market Retum THB Retum 1929

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Assume these were the inflation rates and stock market and Treasury bill returns between 1929 and 1933 Year Inflation Stock Market Retum THB Retum 1929 5 -142 7.0 1930 -34 -31.5 23 1931 -9.2 -472 1.4 1932 -11.4 -10.4 1933 7 632 2 a. What was the real return on the stock market in each year? (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Real Return 1929 % 1930 % 1931 % 1932 1933 b. What was the rithmetic average rat retum? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations, Inter your answer as a percent rounded to 2 decimal places) Average real retum c. What was the premium in each year? (Negative answers should be indicated by a minus sign. Enter your answers as percent rounded to 2 decimal places) Year Risk Premium 1929 1930 1931 1932

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