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You ve observed the following returns on Pine Computer s stock over the past five years: 1 6 percent, 1 6 percent, 1 8 percent,

Youve observed the following returns on Pine Computers stock over the past five years: 16 percent, 16 percent, 18 percent, 28 percent, and 10 percent. Suppose the average inflation rate over this period was 2.1 percent and the average T-bill rate over the period was 4.2 percent. What was the average nominal risk premium on the companys stock?

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