3. 10. Calculating Real Returns and Risk Premiums [LO 12.1] For Problem 9, suppose the average inflation

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3. 10.

Calculating Real Returns and Risk Premiums [LO 12.1] For Problem 9, suppose the average inflation rate over this period was 3.1 per cent and the average cash rate over the period was 3.9 per cent.

1. What was the average real return on the company’s shares?

2. What was the average nominal risk premium on the company’s shares?

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