from this i only need question 3) and 4 answered ASSET ANNUAL RETURNS A) 5%, 10%
ID: 2681828 • Letter: F
Question
from this i only need question 3) and 4 answered
ASSET ANNUAL RETURNS
A) 5%, 10%, 15%, 4%
B) -6%, 20%, 2%, -5%, 10%
C) 12%, 15%, 17%
D) 10%, -10%, 20%, -15%, 8%, -7%
3.Recalling the definitions of risk premiums from Chapter 8 and using the Treasury bill return in Table 12.4 as an approximation to the nominal risk-free rate, what is the risk premium from investing in each of the other asset classes listed in Table 12.4?
4.What is the real, or after-inflation, return from each of the asset classes listed in Table 12.4?
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Explanation / Answer
A) avg ret =( 5%+ 10%+15%+4%)/4 = 8.5% B) avg ret = -6%+20%+2% -5%+ 10%)/5 = 4.2% C) avg rtet = 12%+ 15% +17% )/3 = 14.6% D) avg ret = 10%-10%+20%-15%+8% -7%)/5 = 1.2%
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