question archive The Reserve Bank of Australia expects the inflation rate in Australia to be 4
Subject:BusinessPrice: Bought3
The Reserve Bank of Australia expects the inflation rate in Australia to be 4.50% and financial analysts evaluate the risk-premium on small company shares to be 3.70% for the year. The Commonwealth Government's T-notes yield is expected to be 8% for the next year. What rate of return is expected to be earned on small-company shares over the next year?