The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills CPI (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 2021 28.70% -1.54% 0.40% 7.00% 2022 -19.78% -8.55% 2.20% 6.50% Calculate the average risk premium earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)
The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills CPI (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 2021 28.70% -1.54% 0.40% 7.00% 2022 -19.78% -8.55% 2.20% 6.50% Calculate the average risk premium earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following return series comes from Global Financial Data.
Year Large Stocks LT Gov Bonds US T-bills CPI
(Rf asset) (inflation)
2017 21.83% 6.24% 0.80% 2.07%
2018 -5.28% -1.25% 1.81% 2.10%
2019 25.45% 3.35% 2.15% 1.10%
2020 18.16% 10.25% 4.50% 1.88%
2021 28.70% -1.54% 0.40% 7.00%
2022 -19.78% -8.55% 2.20% 6.50%
Calculate the average risk premium earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)
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