ABC stock returned 7.1% on average over its lifetime. The risk premium on this stock was...
ABC stock returned 7.1% on average over its lifetime. The risk premium on this stock was 3.3% and the inflation rate was 3.1%. What was the average nominal risk-free rate of return for those 77 years? show work :)
Homework Answers
average nominal risk-free rate of return = stock return-risk premium = 7.1-3.3= 3.8%
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ABC stock returned 7.1% on average over its lifetime. The risk
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