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help find the average nominal risk premium You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, 12 percent,
help find the average nominal risk premium
You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent. The average inflation rate over this period was 3.1 percent and the average T-bili rate over the period was 4.1 percent. a. What was the average real return on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the average nominal risk premium on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16. Answer is complete but not entirely correct. You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent. The average inflation rate over this period was 3.1 percent and the average T-bili rate over the period was 4.1 percent. a. What was the average real return on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the average nominal risk premium on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16. Answer is complete but not entirely correct Step by Step Solution
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