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PISE Name: Section 1: Problem solving questions: (Demonstrate our calculation steps to receive partial and full credit _Student ID: PI (15 points): You've observed the
PISE Name: Section 1: Problem solving questions: (Demonstrate our calculation steps to receive partial and full credit _Student ID: PI (15 points): You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 3 percent percent, 24 percent, 22 percent, and 12 percent. Suppose the average inflation rate over this time period was 3.6 percentage average T-bill rate was 4.8 percent. Based on this information, a. What is the arithmetic average return on the stock for this period? The average return on the stocka b. What is the geometric average return on the stock for this period? c. What was the average nominal risk premium? Page 2 of 6
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