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Average nominal risk premium on the stock

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Reference no: EM131113955

Following Returns on stock over the last 5 years:

  • 20 percent
  • -12 percent
  • 17 percent
  • 20 percent
  • 10 percent

Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate was 4.6 percent.

What was the average real return on the stock?

What was the average nominal risk premium on the stock?

Reference no: EM131113955

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