Question
You've observed the following nominal returns on Regina Computer's stock over the past five years: 20%, 12%, 17%, 20%, and 10%. suppose the average inflation
You've observed the following nominal returns on Regina Computer's stock over the past five years: 20%, 12%, 17%, 20%, and 10%. suppose the average inflation rate over this period was 1.7% and the average T-bill rate over the period was 4.6%.
a.What was the average real return on Regina's stock?(Do not round intermediate calculations Round the final answer to 2 decimal places.)
Average real return%
b.What was the average nominal risk premium on Regina's stock?(Do not round intermediate calculations Round the final answer to 2 decimal places.)
Average nominal risk premium%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started