Stock A returns in years 1, 2, 3 and 4 are 0.02, 0.032, 0.018, and 0.03. Stock

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Stock A returns in years 1, 2, 3 and 4 are 0.02, 0.032, 0.018, and 0.03. Stock B returns are 0.041, 0.031, 0.02, and 0.053.

Average return from short-term government bond over these years is 1%. How much is the average risk premium from stock A?

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Control System Analysis And Design

ISBN: 9788122438857

2nd Edition

Authors: A.K. Tripathi

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Posted Date: Apr 07, 2024 08:41 AM

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Stock A returns in years 1, 2, 3 and 4 are 0.02, 0.032, 0.018, and 0.03. Stock

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To calculate the average risk premium from Stock A we need to subtract the average return from s... View the full answer

Control System Analysis And Design

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