Compute the average rates of return on Treasury bills

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Question - Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $58. The stock will pay a dividend at year-end of $3.00. Assume that risk-free Treasury securities currently offer an interest rate of 1.7%.

Required - Compute the average rates of return on Treasury bills, government bonds, and common stocks, 1900-2017?

Reference no: EM132679546

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