Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 16 percent, 5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent, and the average T-bill rate over the period was 5.3 percent.

a.
What was the average real return on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Average real return %

b.
What was the average nominal risk premium on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 1decimal place, e.g., 32.1.)

Average nominal risk premium %

Question

Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 16 percent, 5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent, and the average T-bill rate over the period was 5.3 percent.

a.	What was the average real return on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Average real return

%

b.	What was the average nominal risk premium on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 1decimal place, e.g., 32.1.)

Average nominal risk premium

%

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Question

Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 16 percent, 5 percent, 19 percent, 13 percent, and 10

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