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Below are the returns for different asset classes for a particular year: Asset class Return T-bills 3.7% Corporate bonds 5.5% Small company stocks 17.3% Large
Below are the returns for different asset classes for a particular year:
Asset class | Return |
T-bills | 3.7% |
Corporate bonds | 5.5% |
Small company stocks | 17.3% |
Large company stocks | 11.5% |
The inflation rate was 1.9%.
Part 1
What was the real return on corporate bonds?
Part 2
What was the real return on small-company stocks?
Part 3
What was the real return on Treasury bills?
Part 4
What was the real risk premium for corporate bonds?
Part 5
What was the real risk premium for small company stocks?
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