Calculate the equity risk premium fo quarter century, Finance Basics

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Calculate the equity risk premium fo quarter century

The table below shows the average return on U.S. stocks and bonds for 25-year periods ending in 1925, 1950, 1975,and 2000. Calculate the equity risk premium fo each quarter century. What lesson emerges from your calculations?

Ave. Return 1925 1950 1975 2000

stocks 9.7% 10.2% 11.4% 16.2%

bonds 3.5% 4.1% 2.4% 10.6%

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Finance Basics: Calculate the equity risk premium fo quarter century

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Finance Basics: Calculate the equity risk premium fo quarter century

Reference No:- TGS054805

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Recent Questions Asked Finance Basics

Q : Problem related to constant growth rate

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Finance Basics: Calculate the equity risk premium fo quarter century

Reference No:- TGS054805

Recent Questions Asked Finance Basics

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