For problem, suppose the average inflation rate over this period was 4.2 percent and the average T-bill

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For problem, suppose the average inflation rate over this period was 4.2 percent and the average T-bill rate over the period was 5.1 percent.

(a) What was the average real return on the stock?

(b) What was the average nominal risk premium on the stock?

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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Apr 24, 2012 07:42 AM

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For problem, suppose the average inflation rate over this period was 4.2 percent and the average T-bill

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a To calculate the average real return we can use the average return of the ass...View the full answer

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