{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T06:00:10-04:00", "answer_date": "2024-05-25 06:00:10", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1670298", "url": "\/study-help\/questions\/problem-1210-calculating-real-returns-and-risk-premiums-lo1-youve-1670298", "question_creation_date_js": "2024-05-25T06:00:10-04:00", "question_creation_date": "May 25, 2024 06:00 AM", "meta_title": "[Solved] Problem 12-10 Calculating Real Returns an | SolutionInn", "meta_description": "Answer of - Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Pine Computer' | SolutionInn", "meta_keywords": "problem,12-10,calculating,real,returns,risk,premiums,lo1,ve,observed,pine,computer", "question_title_h1": " Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Pine Computer's stock over the past five years: 12", "question_title": " Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed", "question_title_for_js_snippet": "Problem 12 10 Calculating Real Returns and Risk Premiums LO1 You've observed the following returns on Pine Computer's stock over the past five years 12 percent, 12 percent, 19 percent, 24 percent, and 10 percent Suppose the average inflation rate over this period was 2 5 percent and the average T bill rate over the period was 3 2 percent a What was the average real return on the company's 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 company's 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 b Average nominal risk premium ", "question_description": "\"image", "transcribed_text": "Problem 12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Pine Computer's stock over the past five years: 12 percent, -12 percent, 19 percent, 24 percent, and 10 percent. Suppose the average inflation rate over this period was 2.5 percent and the average T-bill rate over the period was 3.2 percent. a. What was the average real return on the company's 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 company's 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 % b. Average nominal risk premium %", "related_book": { "title": "Managerial Accounting Tools for business decision making", "isbn": "978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895", "edition": "6th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/100.jpg", "uri": "\/textbooks\/managerial-accounting-tools-for-business-decision-making-6th-edition-100", "see_more_uri": "" }, "free_related_book": { "isbn": "030023452X", "uri": "\/textbooks\/a-little-history-of-economics-1st-edition-9780300234527", "name": "A Little History Of Economics", "edition": "1st Edition" }, "question_posted": "2024-05-25 06:00:10", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/you-drive-1-2-miles-on-your-way-to-college-663391", "description": "You drive 1 2 miles on your way to college campus and it takes' you 2 5 minutes. Before you park your car, you realize that you forgot your wallet. 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