Q10 (3 points)/ Assume that, historically, U.S. Treasury bills had an average return of 3.5...
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Q10 (3 points)/ Assume that, historically, U.S. Treasury bills had an average return of 3.5 percent as compared to 6.1 percent on long-term government bonds. During this same time period, assume inflation averaged 3.0 percent. What was the average nominal risk premium on the long-term government bonds? A) 3.1% B) .1% C) 2.9% D) 1.8% E) 2.6%.
Q10 (3 points)/ Assume that, historically, U.S. Treasury bills had an average return of 3.5 percent as compared to 6.1 percent on long-term government bonds. During this same time period, assume inflation averaged 3.0 percent. What was the average nominal risk premium on the long-term government bonds? A) 3.1% B) .1% C) 2.9% D) 1.8% E) 2.6%
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