Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
10th Edition
ISBN: 9781260703931
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
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Chapter 11, Problem 1QP

a)

Summary Introduction

To discuss: Theaverage rate of return for the period 1900-2017.

a)

Expert Solution
Check Mark

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
Check Mark

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
Check Mark

Explanation of Solution

The standard deviation of returns for the period of 1900-2017 is 19.7%

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