Question
During the past five years, KwonCo.'s stock earned annual returns of 7 percent, 13 percent, 19 percent, 8 percent, and 15 percent. Suppose the average
During the past five years, KwonCo.'s stock earned annual returns of 7 percent, 13 percent, 19 percent, 8 percent, and 15 percent. Suppose the average inflation rate over this time period was 2.6 percent and the average T-bill rate was 3.1 percent. Based on this information, what was the average nominal risk premium?
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
