Question
date Value-weighted stock returns Three month treasury bill return (annualized) Inflation caldt vwretd tbill cpi rate 19261231 0.098479 0.031943 -1.1% 19271231 0.328716 0.031247 -2.3% 19281231
| date | Value-weighted stock returns | Three month treasury bill return (annualized) | Inflation |
| caldt | vwretd | tbill | cpi rate |
| 19261231 | 0.098479 | 0.031943 | -1.1% |
| 19271231 | 0.328716 | 0.031247 | -2.3% |
| 19281231 | 0.391397 | 0.038241 | -1.2% |
| 19291231 | -0.150955 | 0.047367 | 0.6% |
| 19301231 | -0.289005 | 0.023473 | -6.4% |
| 19311231 | -0.443873 | 0.01023 | -9.3% |
| 19321231 | -0.079449 | 0.008056 | -10.3% |
| 19331230 | 0.574131 | 0.002933 | 0.8% |
annual value-weighted NYSE/AMEX/NASDAQ portfolio stock returns, annualized treasury bill returns, and annual CPI inflation. (Note: all returns are in decimal format. You need to multiply them by 100 if you want to convert them to percentages.)
(a) Calculate the nominal stock and Tbill returns over time
(b) Calculate the real stock and Tbill returns over time
- Calculate the cumulative stock and Tbill returns the real value at each date of $1 invested in 1926 (Plot, using the real interest rates, the $value of your initial investment of $1 over time.)
- What do you learn from these graphs?
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The Oxford Handbook Of Private Equity
Authors: Douglas Cumming
1st Edition
0195391586, 978-0195391589
