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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 (%) 1929 1930 1931 1932

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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 (%) 1929 1930 1931 1932 1933 -0.2 -6.0 -9.5 -10.3 Stock Market Return(%) - 14.5 -28.3 -43.9 -9.9 57.3 T-Bill Return(%) 4.8 2.4 1.1 1.0 0.3 0.5 a. What was the real return on the stock market 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What was the risk premium in each year? (Negative answers should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium % 1929 1930 1931 % % % % 1932 1933

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