Assume large-company stocks returned 118 percent on average


Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.2 percent. What was the average nominal risk-free rate of return for those 75 years?

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Finance Basics: Assume large-company stocks returned 118 percent on average
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