Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forecasting Revenue And Expenses For Small Business Using Statistical Analytics

Authors: Eleanor Winslow

1st Edition

0578797259, 978-0578797250

More Books

Students also viewed these Finance questions