Question
Suppose you found the following average annual returns over the past 10 years: Sector Fund: 11.0% Canadian Bonds: 5.9% Canadian Treasury Bills: 3.7% Canadian Inflation
Suppose you found the following average annual returns over the past 10 years:
- Sector Fund: 11.0%
- Canadian Bonds: 5.9%
- Canadian Treasury Bills: 3.7%
- Canadian Inflation Rate : 2.4%
Given this information, What was the risk premium an investor earned if they invested in the Sector Fund over this 10-year period?
Step by Step Solution
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Step: 1
The risk premium is the excess return earned by an investor for taking on addit...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
