Question: 9 . Calculating Returns and Variability You've observed the following returns on Yasmin Corporation's stock over the past five years: 1 7 percent, 9 percent,

9. Calculating Returns and Variability You've observed the following returns on Yasmin
Corporation's stock over the past five years: 17 percent, 9 percent, 3 percent, 27 percent, and
18 percent.
a. What was the arithmetic average return on Yasmin's stock over this five-year period?
b. What was the variance of Yasmin's returns over this period? The standard deviation?
10. Calculating Real Returns and Risk Premiums In Problem 9, suppose the average inflation rate over
this period was 2.6 percent and the average T-bill rate over the period was 3.25 percent.
a. What was the average real return on Yasmin's stock?
b. What was the average nominal risk premium on Yasmin's stock?

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