What is the real risk-free rate of return

Reference no: EM131368353

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother In-Law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:

Inflation premium= 3.25 %

Liquidity premium= 0.6%

Maturity risk premium= 1.8%

Default risk premium= 2.15%

On the basis of these data, what is the real risk-free rate of return?

Reference no: EM131368353

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