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You've observed the following returns on Pine Computer's stock over the past five years: 1 8 percent, - 1 4 percent, 2 0 percent, 2
You've observed the following returns on Pine Computer's stock over the past five years:
percent, percent, percent, percent, and percent. Suppose 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 company's stock? 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 company's stock? Do not round
intermediate calculations and enter your answer as a percent rounded to decimal
place, eg
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