Based on the past 88 years the inflation rate averaged 30, Finance Basics

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Based on the past 88 years the inflation rate averaged 30

Question: Based on the past 88 years, the inflation rate averaged 3.0 percent and the U.S. Treasury bill yield was 3.5 percent, and the historical risk premium on small-company stocks was 13.2 percent. If these averages hold, what nominal rate of return should you expect to earn on small-company stocks over the next several years?

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Finance Basics: Based on the past 88 years the inflation rate averaged 30

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