Question
The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills (Rf asset) CPI (inflation) 2016 12.95% 2.35% 0.20%
The following return series comes from Global Financial Data.
| Year | Large Stocks | LT Gov Bonds | US T-bills (Rf asset) | CPI (inflation) |
| 2016 | 12.95% | 2.35% | 0.20% | 1.90% |
| 2017 | 18.63% | 5.75% | 0.60% | 1.80% |
| 2018 | -5.28% | -1.25% | 0.80% | 2.10% |
| 2019 | 25.45% | 3.35% | 1.20% | 1.10% |
| 2020 | 19.12% | 9.30% | 1.50% | 2.10% |
Using the approximate fisher equation, calculate the average real risk premium earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Urban Public Finance
Authors: D. Wildasin
1st Edition
0415851882, 978-0415851886
