Question
Hi please help with my homework problem I solved A but cannot figure out B Youve observed the following returns on Pine Computers stock over
Hi please help with my homework problem I solved A but cannot figure out B
Youve observed the following returns on Pine Computers stock over the past five years: 12 percent, 9 percent, 20 percent, 17 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.9 percent. |
a. | What was the average real return on the companys stock? (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 companys stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) |
a. Average real return = 6.59%
b. Average nominal risk premium = ???%
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