Question
Youve observed the following returns on Yasmin Corporations stock over the past five years: 10 percent, 11 percent, 18 percent, 19 percent, and 10 percent.
Youve observed the following returns on Yasmin Corporations stock over the past five years: 10 percent, 11 percent, 18 percent, 19 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 4.7 percent. |
a. | What was the average real return on Yasmins stock? (Do not round intermediate calculations. 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 Yasmins stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place (e.g., 32.1).) |
Average nominal risk | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started