Question: For Problem 9, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.3 percent.

  • For Problem 9, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.3 percent.

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

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

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