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9 . Calculating Returns and Variability You ve observed the following past returns : - 2 4 % , 1 3 % , 2 9
Calculating Returns and Variability
Youve observed the following past returns : and
a What is the arithmetic average returns?
b What is the variance and standard deviation of the returns?
Calculating Real Returns and Risk Premiums
For problem suppose the average inflation rate was and the average Tbill rate was
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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