Based on the past 88 years, the inflation rate averaged 3.0% and the US Treasury yield was 3.5%, and the historical risk premium for small business stocks was 13,2 %. If these averages hold, what nominal rate of return should you expect to earn on small business stocks over the next few years?

Answer rating: 100% (QA)

The historical risk premium for small business stocks is given as 132 which repre... View the full answer