In Problem 9, suppose the average inflation rate over this period was 3.6 percent and the average

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In Problem 9, suppose the average inflation rate over this period was 3.6 percent and the average T-bill rate over the period was 4.1 percent.

a. What was the average real return on the company’s stock?

b. What was the average nominal risk premium on the company’s stock?

Data From Problem 9

You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 19 percent, 24 percent, 11 percent, −9 percent, and 13 percent.

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Related Book For answer-question

Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Dec 06, 2019 12:26 PM

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In Problem 9, suppose the average inflation rate over this period was 3.6 percent and the average

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a To calculate the average real return we can use the average return of the ...View the full answer

Corporate Finance

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