(Solution) - Here are inflation rates and U S stock market and Treasury -(2025 Original AI-Free Solution)

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Here are inflation rates and U.S. stock market and Treasury bill returns between 1929 and
1933:

a. What was the real return on the stock market in each year?
b. What was the average real return?
c. What was the risk premium in each year?
d. What was the average risk premium?
e. What was the standard deviation of the riskpremium?