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PLEASE SHOW ALL OF YOUR WORK TO SOLVE THE QUESTIONS and SHOW WHAT FORMULA YOU USE TO COMPUTE THE ANSWERS...THANKS!! You've observed the following returns
PLEASE SHOW ALL OF YOUR WORK TO SOLVE THE QUESTIONS and SHOW WHAT FORMULA YOU USE TO COMPUTE THE ANSWERS...THANKS!!
You've observed the following returns on Barnett Corporation's stock over the past five years: -12 percent, 23 percent, 18 percent, 7 percent, and 13 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-Bill rate over the period was 4.3 percent.
Answer the following questions-
a)What was the average (nominal) return on the stock?
b)What was the risk premium on the stock?
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