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the last 2 select answers are both increase and decrease You read in Business Week that a panel of economists has estimated that the long-run
the last 2 "select" answers are both increase and decrease
You read in Business Week that a panel of economists has estimated that the long-run real gronth rate of the US, economy over the next five-year period will average 5 percent. In addition, a bank newsletter estimates that the average annual rate of inflation during this five-year period will be about 5 percent. What nominai rate of rehim would you expect on U.S. government T-bills during this period? Round your answer to two decimal places. What would your required rate of return be on common stocks if you wanted a 3 percent risk premium to own common stocks? Do not round intemedate caleulations, Round your answer to two decimal places. \% If common stock investors became more risk averse, what would happen to the required rate of return on common stods? what would be the impact on stock prices? As an investor becomes more risk averse, the required rate of return will and the stock prices wil Step by Step Solution
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