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You've observed the following returns on Pine Computer's stock over the past five years: - 2 5 . 2 percent, 1 3 . 8 percent,
You've observed the following returns on Pine Computer's stock over the past five years: percent, percent, percent,
percent, and percent. The average inflation rate over this period was percent and the average bill rate over the period
was 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 decimal places, eg
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 decimal places, eg
a Average real return
b Average nominal risk premium
You've observed the following returns on Pine Computer's stock over the past five years: percent, percent, percent, percent, and percent. The average inflation rate over this period was percent and the average Tbill rate over the period was 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 decimal places, eg
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 decimal places, eg
tablea Average real return,
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