Question: Chapter 10 Homework i Saved Help Save & Exit Submit Check my work 8 You've observed the following returns on SkyNet Data Corporation's stock over

 Chapter 10 Homework i Saved Help Save & Exit Submit Check

Chapter 10 Homework i Saved Help Save & Exit Submit Check my work 8 You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 17 percent, -4 percent, 20 percent, 12 percent, and 10 percent. Suppose the average inflation rate over this period was 2.7 percent and the average T-bill rate over the period was 5.4 percent. 10 points eBook 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.) Hint Print References a. 8.08 % Average real return Average nominal risk b. %

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