Using historical risk premiums from Table 5.5 over the 19272018 period as your guide, what...
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Using historical risk premiums from Table 5.5 over the 19272018 period as your guide, what would be your estimate of the expected annual HPR on the Big/Value portfolio if the current risk-free interest rate is 2.10%? (Round your answer to 2 decimal places.)
expexted annual HPR =
2. During a period of severe inflation, a bond offered a nominal HPR of 79% per year. The inflation rate was 68% per year. a. What was the real HPR on the bond over the year? (Round your answer to 2 decimal places.)
Real HPA %
b. Find the approximation rreal rnom i. Compare your answer in part b to the one in part a.
Approximation %
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