Question: Returns Y 14 % 20 % 29 - 10 11 8 15 10 19 Year 1 2 3 4 5 17 Using the returns shown


Returns Y 14 % 20 % 29 - 10 11 8 15 10 19 Year 1 2 3 4 5 17 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places, e.g., 16161.) Y % % Average returns Variances Standard deviations % % You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 14 percent, -7 percent, 17 percent, 15 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bill rate over the period was 5.1 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.) Answer is not complete. a. % Average real return Average nominal risk b. %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
