What was average nominal risk premium on company stock

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Reference no: EM131962311

You’ve observed the following returns on Yasmin 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.

a. What was the average real return on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Average real return %

b. What was the average nominal risk premium on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Average nominal risk premium %

Reference no: EM131962311

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