Question: Problem 10-10 Calculating Real Returns and Risk Premiums [LO 1] You've observed the following returns on Pine Computer's stock over the past five years: -26.7
Problem 10-10 Calculating Real Returns and Risk Premiums [LO 1] You've observed the following returns on Pine Computer's stock over the past five years: -26.7 percent. 14.8 percent, 32.6 percent, and 21.9 percent. The average inflation rate over this period was 3.29 percent and the average T-bill rate over the 4.3 percent. o. What was the average real return on the stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. b. What was the average nominal risk premium on the stock? Note: Do not round intermediate calculations and enter your answer as o percent rounded to 2 decimal places, e
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
