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Assume these were the inflation rates and U.S. stock market and Treasury bill returns between 1929 and 1933: year inflation stock market return t-bill return
Assume these were the 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
- What was the real return on the stock market in each year?
- What was the average real return?
- What was the risk premium in each year?
- What was the average risk premium?
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