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You have observed the following returns on Sonora Data Corp.s stock over the past 5 years: 34%, 16%, 19%, -21%, and 8%. a. What was
You have observed the following returns on Sonora Data Corp.s stock over the past 5 years: 34%, 16%, 19%, -21%, and 8%. a. What was the arithmetic average return on SDCs stock over this five-year period?b. What was the variance of SDCs returns over this period? The standard deviation?Now suppose the average inflation rate over this period was 4.2% and the average T-bill rate over the period was 5.1%. c. What was the average real return on SDCs stock? d. What was the average nominal risk premium on SDCs stock?
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