What was the average real return on the stock

Assignment Help Financial Management

Reference no: EM132048513

You've observed the following returns on Barnett Corporation's stock over the past five years: -28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent.

The average inflation rate over this period was 3.36 percent and the average T-bill rate over the period was 4.3 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.) Average real return %

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 2 decimal places, e.g., 32.16.) Average nominal risk premium %

Reference no: EM132048513

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