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1 . You ve observed the following returns on Pine Computer s stock over the past five years: 2 4 . 3 percent, 1 3
Youve observed the following returns on Pine Computers stock over the past five years: percent, percent, percent, percent, and percent. The average inflation rate over this period was percent and the average Tbill rate over the period was percent. a What was the average real return on the stock? b What was the average nominal risk premium on the stock?
Youve observed the following returns on Pine Computers stock over the past five years: percent, percent, percent, percent, and percent. The average inflation rate over this period was percent and the average Tbill rate over the period was 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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