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1 ABC Corp's stock over the last 5 years averaged a return of 12.5% If the average inflation rate is 8.1% and average T-Bill rate

1 ABC Corp's stock over the last 5 years averaged a return of 12.5%
If the average inflation rate is 8.1% and average T-Bill rate was 4.1% during this period
1.1 What is the average real return on ABC's stock
1.2 What was the average nominal risk premium on the stock?
1.3 YYZ Stock has an expected return of 10.2% and a beta of 0.91 and the expected return on the market is 10.8%
1.4 What must the risk free rate be?
1.5 Based on the data in the table below, calculate the following:
Year Stocks T-bills
2007 8.10% 7.92%
2008 -36.47% 7.99%
2009 37.23% 5.87%
2010 23.93% 5.17%
2011 -17.16% 5.45%
2012 6.57% 7.64%
1.6 Arithmetic average returns for the stocks over the period
1.7 Arithmetic average returns for the T-Bills over the period
1.8 Standard Deviation of the returns for Stocks over the period
1.9 Standard Deviation of the returns for T-Bills over the period

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