Here are annual stock market, Government of Canada bond, and Treasury bill rates of return from 20
Question:
a. What were the risk premiums on the TSX and on long·tern1 government bonds in each year?
b. What were the average risk premiums for the TSX and long-term government bonds?
c. Calculate the standard deviation of each risk premium using the approach in Table 11.4. Do they make sense?
Transcribed Image Text:
Government Long Bond T-Bill Return Year TSX Return Return .0064 0317 2010 .2215 2011 -.0812 .0093 0276 .0096 2012 .0187 0183 2013 .0796 .0097 0227 2014 .0715 .0092 0218
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a Subtract the Tbill rate of return to calculate the risk premium All the TSX Data base on the Googl...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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