Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You've observed the following nominal returns on Regina Computer's stock over the past five years: 18%, -3%, 16%, 11%, and 10%. suppose the average inflation
You've observed the following nominal returns on Regina Computer's stock over the past five years: 18%, -3%, 16%, 11%, and 10%. suppose the average inflation rate over this period was 3.2% and the average T-bill rate over the period was 5.5%. 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 2.23 X % 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 4.75 X %
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