Question
?Youve observed the following returns on Doyscher Corporations stock over the past five years: 28.5 percent, 16.0 percent, 35.0 percent, 3.5 percent, and 22.5 percent.
?Youve observed the following returns on Doyscher Corporations stock over the past five years: 28.5 percent, 16.0 percent, 35.0 percent, 3.5 percent, and 22.5 percent. The average inflation rate over this period was 3.35 percent and the average T-bill rate over the period was 4.3 percent. Required: (a) What was the average real return on the stock? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average real return % (b) What was the average nominal risk premium on the stock? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average nominal risk premium%
You've observed the following returns on Doyscher Corporation's stock over the past five years: -28.5 percent, 16.0 percent, 35.0 percent, 3.5 percent, and 22.5 percent. The average inflation rate over this period was 3.35 percent and the average T-bill rate over the period was 4.3 percent. Required (a) What was the average real return on the stock? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average real return (b) What was the average nominal risk premium on the stock? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average nominal risk premiunmStep by Step Solution
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