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Problem 10: In problem 9, suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over period was
Problem 10: In problem 9, suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over period was 5.1 percent. a. What was the average real return on the company's stock? b. What was the average nominal risk premium on the company's stock? A: a. 6.14% b. 5.50%
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