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Youve observed the following returns on Barnett Corporations stock over the past five years: 26.4 percent, 14.6 percent, 32.2 percent, 2.8 percent, and 21.8 percent.
Youve observed the following returns on Barnett Corporations stock over the past five years: 26.4 percent, 14.6 percent, 32.2 percent, 2.8 percent, and 21.8 percent. The average inflation rate over this period was 3.28 percent and the average T-bill rate over the period was 4.3 percent. What was the average real return on the stock? What was the average nominal risk premium on the stock?
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