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Question regarding the average real return on the stock

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Reference no: EM131054212

You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T-bill rate over the period was 5 percent.

a. What was the average real return on the stock?

b. What was the average nominal risk premium on the stock?

Reference no: EM131054212

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