The following return series comes from Global Financial Data. Year 2016 2017 2018 2019 2020 Large...
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The following return series comes from Global Financial Data. Year 2016 2017 2018 2019 2020 Large Stocks 12.95% 18.63% -5.28% 25.45% 19.12% LT Gov Bonds 2.35% 5.75% -1.25% 3.35% 9.30% US T-bills (Rf asset) 0.20% 0.60% 0.80% 1.20% 1.50% CPI (inflation) 1.90% 1.80% 2.10% 1.10% 2.10% A. calculate the average risk premium earned on large company stocks. B. using the approximate Fisher equation, calculate the risk value premium earned on large companies stocks. c. calculate the average risk premium earned on US. t-bills. The following return series comes from Global Financial Data. Year 2016 2017 2018 2019 2020 Large Stocks 12.95% 18.63% -5.28% 25.45% 19.12% LT Gov Bonds 2.35% 5.75% -1.25% 3.35% 9.30% US T-bills (Rf asset) 0.20% 0.60% 0.80% 1.20% 1.50% CPI (inflation) 1.90% 1.80% 2.10% 1.10% 2.10% A. calculate the average risk premium earned on large company stocks. B. using the approximate Fisher equation, calculate the risk value premium earned on large companies stocks. c. calculate the average risk premium earned on US. t-bills.
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A The average risk premium earned on large company stocks can be calculated by subtracting the avera... View the full answer
Related Book For
Essentials of Business Statistics Communicating With Numbers
ISBN: 978-0078020544
1st edition
Authors: Sanjiv Jaggia, Alison Kelly
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