Question
The average arithmetic return of the US stock market has been 10%. The average annual corporate bond return in the US has been 5%. The
The average arithmetic return of the US stock market has been 10%. The average annual corporate bond return in the US has been 5%. The average 30-yr US Treasury bond return in the US has been 5%. Finally, the average annual US 1-month Treasury bill return in the US has been 3.5%. From this information, please calculate the equity risk premium within the US.
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
