During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds,...
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During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows: U.S. government T-bills U.S. government long-term bonds U.S. common stocks During the year, the consumer price index, which measures the rate of inflation, went from 100 to 116 (1982-1984 100). Compute the rate of inflation during this year, Round your answer to one decimal place. % 5.00% 7.00 10.00 Compute the real rates of return on each of the investments in your portfolio based on the inflation rate. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to two decimal places. Real rate of return U.S. government T-bills. U.S. government long-term bonds U.S. common stocks 34 During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows: U.S. government T-bills U.S. government long-term bonds U.S. common stocks During the year, the consumer price index, which measures the rate of inflation, went from 100 to 116 (1982-1984 100). Compute the rate of inflation during this year, Round your answer to one decimal place. % 5.00% 7.00 10.00 Compute the real rates of return on each of the investments in your portfolio based on the inflation rate. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to two decimal places. Real rate of return U.S. government T-bills. U.S. government long-term bonds U.S. common stocks 34
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To compute the real rates of return on each investment in your portfolio we need to adjust the nomi... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date:
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