Question
You've observed the following nominal returns on Regina Computer's stock over the past five years: 17 percent, 15 percent, 19 percent, 29 percent, and 10
You've observed the following nominal returns on Regina Computer's stock over the past five years: 17 percent, 15 percent, 19 percent, 29 percent, and 10 percent. Suppose the average inflation rate over this period was 2.6 percent and the average T-bill rate over the period was 4.3 percent.
a. What was the average real return on Regina's stock? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Average Real return %
b. What was the average nominal risk premium on Regina's stock? (Do not round intermediate calculations and round your answer to 1 decimal place. (e.g., 32.1))
Average nominal risk %
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