Question: 1) 2) You find a certain stock that had returns of 13 percent, -20 percent, 21 percent, and 12 percent for four of the last

1)

1) 2) You find a certain stock that had returns of 13

2)

percent, -20 percent, 21 percent, and 12 percent for four of the

You find a certain stock that had returns of 13 percent, -20 percent, 21 percent, and 12 percent for four of the last five years. The average return of the stock over this period was 9.3 percent. a. What was the stock's return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b.What is the standard deviation of the stock's returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Missing return b. Standard deviation % % You've observed the following returns on Pine Computer's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-bill rate over the period was 3 percent. a. What was the average real return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) a. Average real return b. Average nominal risk premium % %

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