Solution-What was the real return on the stock market in

What was the real return on the stock market in each year

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Question - Assume these were the inflation rates and U.S. stock market and Treasury bill returns between 1929 and 1933:

Year	Inflation (%)	Stock Market Return (%)	T-Bill Return (%)
1929	0.4	-14.6	4.8
1930	-3.9	-27.1	2.9
1931	-8.2	-49.8	1.4
1932	-10.8	-6.4	0.9
1933	1.0	63.8	0.5

Required -

1. What was the real return on the stock market in each year?

2. What was the average real return?

3. What was the risk premium in each year?

4. What was the average risk premium?

Reference no: EM133070271

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What was the real return on the stock market in each year

Reference no: EM133070271

Reference no: EM133070271

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