Question: Note the return series below and answer the following questions 1. What is the average nominal return earned on large company stocks? (Enter percentages as

Note the return series below and answer the following questions

Note the return series below and answer the following questions 1. What

1. What is the average nominal return earned on large company stocks? (Enter percentages as decimals and round to 4 decimal places)

2. What is the average real return earned on large company stocks? (Enter percentages as decimals and round to 4 decimal places)

3. What is the average risk premium earned on large company stocks? (Enter percentages as decimals and round to 4 decimal places)

4. What is the average real risk premium earned on large company stock? (Enter percentages as decimals and round to 4 decimal places)

5. What is the average risk premium earned on the US t-bills? (Enter percentages as decimals and round to 4 decimal places)

6. What is the average rate of inflation? (Enter percentages as decimals and round to 4 decimal places)

CPI Year Large Stocks LT Gov Bonds US Tbills 2009 26.46% 9.49% 0.15% 2.72% 7.73% 2010 15.06% 0.14% 1.50% 2011 35.75% 2.96% 2.11% 0.06% 2012 16.00% 1.80% 0.08% 1.74% 2013 32.39% -14.69% 0.05% 1.50%

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