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Assume large-company stocks returned 12.1 percent on average over the past 88 years. The risk premium on these stocks was 8.6 percent and the inflation rate was 3.0 percent. Wha…

Assume large-company stocks returned 12.1 percent on average over the past 88 years. The risk premium on these stocks was 8.6 percent and the inflation rate was 3.0 percent. Wha…
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Assume large-company stocks returned 12.1 percent on average over the past 88 years. The risk premium on these stocks was 8.6 percent and the inflation rate was 3.0 percent. What was the average nominal risk-free rate of return for those 88 years?

asked
User Abhishek Sawant
by
8.2k points

1 Answer

7 votes

Answer:

3.5

Step-by-step explanation:

answered
User Flowkap
by
8.2k points
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