Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 10 percent, 10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T-bill rate over the period was 3 percent.

a.	What was the average real return on the stock?

b.	What was the average nominal risk premium on the stock?

Average nominal risk premium

%

a.

a.

What was the average real return on the stock?

a.	What was the average real return on the stock?

a.	What was the average real return on the stock?