Calculate the arithmetic average returns for acer

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You have observed the following returns on Acer's stock over the past five years: 10%, -8%, 12%, 30%, and 16%.

(a) Calculate the arithmetic average returns for Acer stock over this period.

(b) Calculate the standard deviation of the returns for Acer stock.

(c) Suppose the average inflation rate over this period was 2% and the average T-bill rate over the period was 3%. What was the average real return on Acer's stock? What was the average nominal risk premium on Acer's stock? What was the average real risk premium?

(d) Calculate the geometric average returns for Acer stock over this period.

Reference no: EM132506133

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