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You've observed the following returns on Pine Computer's stock over the past five years: -26.1 percent, 14.4 percent, 31.8 percent, 2.7 percent, and 21.7
You've observed the following returns on Pine Computer's stock over the past five years: -26.1 percent, 14.4 percent, 31.8 percent, 2.7 percent, and 21.7 percent. The average inflation rate over this period was 3.27 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real return on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the average nominal risk premium on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Average real return b. Average nominal risk premium % %
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