Fundamentals of Corporate Finance
10th Edition
ISBN: 9781260703931
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 11, Problem 1QP
a)
Summary Introduction
To discuss: Theaverage
a)
Expert Solution
Explanation of Solution
The average rate of return for the period 1900-2017 is 11.5%
b)
Summary Introduction
To discuss: The average risk premium for the period 1900-2017.
b)
Expert Solution
Explanation of Solution
The average risk premium for the period 1900-2017 is 7.7%.
c)
Summary Introduction
To discuss: Thestandard deviation of returns for the period of 1900-2017.
c)
Expert Solution
Explanation of Solution
The standard deviation of returns for the period of 1900-2017 is 19.7%
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