You've observed the following returns on you Yamauchi corporations stock over the past five years:

dash 10%, 24%, 21%, 11%, and 8%.

A. what was the arithmetic average return on the stock over this five year.?

B. What was the variance of the returns over this? The standard deviation?

A. Arithmetic average return on the stock over this five-year period =(-10%+24%+21%+11%+8%)/5 =10.80%

B. Variance =((-10%-10.80%)^2+(24%-10.80%)^2+(21%-10.80%)^2+(11%-10.80%)^2+(8%-10.80%)^2)/(5-1) =1.7970%

Standard Deviation =(((-10%-10.80%)^2+(24%-10.80%)^2+(21%-10.80%)^2+(11%-10.80%)^2+(8%-10.80%)^2)/(5-1))^0.5 =13.41%

Using information from the problem above, suppose the average inflation rate over this period was

3.1% and the average T bill rate over the period was 4.1% . **answer this**

A. What was the average real return on the stock?

B. What was the average nominal risk premium on the stock?