Average Annual Rates Standard Deviation T-Bills ...
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Finance
Average Annual Rates
Standard Deviation
T-Bills
Inflation
Real T-Bill
T-Bills
Inflation
Real T-Bill
Full sample
3.38
2.15
0.46
3.12
4.00
3.76
19271951
0.95
1.79
0.47
1.24
6.04
6.33
19522018
4.26
3.46
0.81
3.13
2.89
2.12
(1927-2018)
Market Index
Big/ Growth
Big/ Value
Small/ Growth
Small/ Value
Mean excess return (annualized)
8.29
8.07
11.69
8.99
15.38
Standard deviation (annualized)
18.52
18.35
24.70
26.06
28.21
Suppose that the inflation rate is expected to be 2.15% in the near future using the data provided above, what would be your predictions for the following? (Round your answers to 2 decimal places.)
A ; The T bill rate
B. The expected rate of return of the big value portfolio
c. The risk premium on the stock market
Answer & Explanation
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