Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The average return of the US Stock market over the past 90 years is roughly 11% per annum. The current 1-month US Treasury bill (T-billy

image text in transcribed
The average return of the US Stock market over the past 90 years is roughly 11% per annum. The current 1-month US Treasury bill (T-billy rate is .02%. The current YTM on a 30-year US Treasury bond is 2.30%. Inflation is currently 9.8% per year. What is the current "risk premium" on the US stock market? 11% 10.98% 8.70% 1.20%

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

Sustainable Value Creation An Inevitable Challenge To Business And Society

Authors: Teun Wolters

1st Edition

3031353501, 978-3031353505

More Books

Students also viewed these Finance questions