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You invested in long-term corporate bonds and earned 6.1 percent. During that same time period large company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, US Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent, What average risk premium did you earn? 6.5% .4% 2.3% 1.9% 1.3%

You invested in long-term corporate bonds and earned 6.1 percent. During that same time period large company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, US Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent, What average risk premium did you earn? 6.5% .4% 2.3% 1.9% 1.3%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You invested in long-term corporate bonds and earned 6.1 percent. During that same time period large company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, US Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent, What average risk premium did you earn? 6.5% .4% 2.3% 1.9% 1.3%
Transcribed Image Text:You invested in long-term corporate bonds and earned 6.1 percent. During that same time period large company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, US Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent, What average risk premium did you earn? 6.5% .4% 2.3% 1.9% 1.3%
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