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Youve observed the following returns on Yasmin Corporations stock over the past five years: 11 percent, 11 percent, 18 percent, 23 percent, and 10 percent.

Youve observed the following returns on Yasmin Corporations stock over the past five years: 11 percent, 11 percent, 18 percent, 23 percent, and 10 percent. Suppose the average inflation rate over this period was 2 percent and the average T-bill rate over the period was 3.1 percent.

a.

What was the average real return on Yasmins stock?

b.

What was the average nominal risk premium on Yasmins stock?

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