What was the average nominal risk premium on the stock

Reference no: EM13304614

You've observed the following returns on Staverosky Corporation's stock over the past five years: -25.5 percent, 14.0 percent, 31.0 percent, 2.5 percent, and 21.5 percent. The average inflation rate over this period was 3.25 percent and the average T-bill rate over the period was 4.3 percent.

(a) What was the average real return on the stock?

(b) What was the average nominal risk premium on the stock?

Reference no: EM13304614

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