What was the average nominal risk premium on stock

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Reference no: EM131313969

You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 12 percent, –9 percent, 20 percent, 17 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent, and the average T-bill rate over the period was 4.9 percent.

a. What was the average real return on the 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 stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Reference no: EM131313969

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