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Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 21 percent, 17 percent, 26 percent, 27 percent, and 4
Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 21 percent, 17 percent, 26 percent, 27 percent, and 4 percent.
a. What was the arithmetic average return on the companys stock over this five - year period?
b. What was the variance of the companys returns over this period? The standard deviation?
c. What was the average nominal risk premium on the companys stock if the average T - bill rate over the period was 5.1 percent?
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