Reference no: EM131825402

You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 10 percent, –11 percent, 18 percent, 19 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 4.7 percent.

a. What was the average real return on Yasmin’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 Yasmin’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 %