Question
You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 12%, -12%, 19%, 24%, & 10%. Suppose the average inflation
You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 12%, -12%, 19%, 24%, & 10%. Suppose the average inflation rate over this period was 2.5%, & the average T-bill rate over the period was 3.2%.
A) What was the average real return on the stock? (do not round intermediate calculations & enter answer as a percent rounded to 2 decimal places)
****Note Answer is not 0.7% or 0.07%****
B) What was the average nominal risk premium on the stock? (Do not round intermediate calculations & enter answer as a percent rounded to 1 decimal place)
*******Note Answer not 4.9%******
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