FIN 571 Week 1 DQ 1 FOR MORE CLASSES VISIT www . fin571tutor . com
Compute the percentage total return . ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .)
17 . You ’ ve observed the following returns on SkyNet Data Corporation ’ s stock over the past five years : 14 percent , – 7 percent , 17 percent , 15 percent , and 10 percent . Suppose the average inflation rate over this period was 1.4 percent , and the average T-bill rate over the period was 5.1 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 .) 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 1 decimal place , e . g ., 32.1 .)
Question 17 ( another Set )
You ’ ve observed the following returns on SkyNet Data Corporation ’ s stock over the past five years : 17 percent , – 15 percent , 19 percent , 29 percent , and 10 percent . Suppose the average inflation rate over this period was 2.6 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 .)
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 1 decimal place , e . g ., 32.1 .)
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FIN 571 Week 1 DQ 1 FOR MORE CLASSES VISIT www . fin571tutor . com