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Youve observed the following returns on Yamauchi Corporations stock over the past five years: 10 percent, 24 percent, 21 percent, 11 percent, and 8 percent.
Youve observed the following returns on Yamauchi Corporations stock over the past five years: 10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. |
a. | What was the average real return on the stock? |
What was the average nominal risk premium on the stock?
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