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Suppose you are given the following end of year returns for Large stocks, Long-term Bonds, Treasury Bills, and Inflation rates. Calculate the average equity risk
Suppose you are given the following end of year returns for Large stocks, Long-term Bonds, Treasury Bills, and Inflation rates. Calculate the average equity risk premium earned on large stocks. (Enter percentages as decimals and round to 4 decimals)
Year | Large Stocks | Long-term Bonds | T-bills | Inflation |
1941 | -11.77% | -8.66% | 0.14% | 9.03% |
1942 | 21.07% | 2.67% | 0.34% | 2.96% |
1943 | 25.76% | 2.50% | 0.38% | 2.30% |
1944 | 19.69% | 2.88% | 0.38% | 2.25% |
1945 | 36.46% | 5.17% | 0.38% | 18.13% |
1946 | -8.18% | 4.07% | 0.38% | 8.84% |
1947 | 5.24% | -1.15% | 0.62% | 2.99% |
1948 | 5.10% | 2.10% | 1.06% | -2.07% |
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