QUESTION

58. Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stock

Category: Business
Subject: Finance
Due Date: 02/01/2016
Question Asked: 2016-02-01 11:12:02

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58. Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.2 percent. What was the average nominal risk-free rate of return for those 75 years? 
A. 3.90 percent
B. 9.27 percent
C. 4.26 percent
D. 8.33 percent
E. 8.60 percent


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58. Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stock

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Posted on 2016-02-01 11:12:02

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