Details of this Paper

Please help with problem below using attachment....

Description

Solution


Question

Please help with problem below using attachment. Problem B Part 1. Recalling the definitions of risk premiums from Chapter 8 and using the Treasury bill return in Table 12.4 as an approximation to the nominal risk-free rate, what is the risk premium from investing in each of the other asset classes listed in Table 12.4? Part 2. What is the real, or after-inflation, return from each of the asset classes listed in Table 12.4? TABLE 12.4 Historical Returns and Standard Deviation of Returns from Different Assets, 1928-2008 Treasury Bills Treasury Bonds Stocks Inflation Rate Annual Average Return 3.8% 5.4% 11.1% 3.2% Standard Deviation 3.0% 7.6% 20.4% 4.0%

 

Paper#13726 | Written in 18-Jul-2015

Price : $25
SiteLock