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Consider the following rates of return for the period from 1970 through 1975: Year Large-Company Stocks U.S. Treasury Bills 1970 3.94% 6.50% 1971 14.30 4.36
Consider the following rates of return for the period from 1970 through 1975:
Year | Large-Company Stocks | U.S. Treasury Bills |
1970 | 3.94% | 6.50% |
1971 | 14.30 | 4.36 |
1972 | 18.99 | 4.23 |
1973 | -14.69 | 7.29 |
1974 | -26.47 | 7.99 |
1975 | 37.23 | 5.87 |
What was the average risk premium over this period for large-company stocks?
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