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Hello, I need a little help figuring out the answer to this homework problem. Can someone help me? 0.50 points Problem 10-10 Calculating Real Returns
Hello,
I need a little help figuring out the answer to this homework problem. Can someone help me?
0.50 points Problem 10-10 Calculating Real Returns and Risk Premiums You've observed the following returns on Yasmin Corporation's stock over the past five years: 14 percent, - 9 percent, 16 percent, 21 percent, and 3 percent. Suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 percent. a. What was the average real return on Yasmin's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Average real return b. What was the average nominal risk premium on Yasmin's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place (e.g., 32.1).) Average nominal riskStep by Step Solution
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