Question
The inflation rate in the United States has averaged 3% a year since 1900. Use the data in the table below to answer the following
The inflation rate in the United States has averaged 3% a year since 1900. Use the data in the table below to answer the following question: Average rates of return on Treasury bills, government bonds, and common stocks, 19002015.
| Portfolio | Average Annual Rate of Return (%) | Average Premium (Extra return versus Treasury bills) (%) | |||
| Treasury bills | 3.8 | ||||
| Treasury bonds | 5.3 | 1.5 | |||
| Common stocks | 11.4 | 7.6 | |||
| What was the average real rate of return on Treasury bills, Treasury bonds, and common stocks in that period? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
