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What was the risk premium on the stock

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Reference no: EM131473032

You've observed the following returns on Barnett Corporation's stock over the past five years: -12 percent, 23 percent, 18 percent, 7 percent, and 13 percent.  Suppose the average inflation rate over this period was 3.2 percent and the average T-Bill rate over the period was 4.3 percent. 

Answer the following questions:

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

b) What was the risk premium on the stock?

Reference no: EM131473032

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