Question: The following return series comes from Global Financial Data. US T-bills CPI Year Large Stocks LT Gov Bonds (Rf asset) (inflation) 2016 12.95% 2.35% 0.20%
The following return series comes from Global Financial Data. US T-bills CPI Year Large Stocks LT Gov Bonds (Rf asset) (inflation) 2016 12.95% 2.35% 0.20% 1.90% 2017 18.63% 5.75% 0.60% 1.80% 2018 -5.28% -1.25% 0.80% 2.10% 2019 25.45% 3.35% 1.20% 1.10% 2020 19.12% 9.30% 1.50% 2.10% Calculate the average risk premium earned on long-term government bonds. (Enter percentages as decimals and round to 4 decimals
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