FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 47

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.)
===============================================
FIN 571 Week 1 DQ 1
FOR MORE CLASSES VISIT
www.fin571tutor.com
What is ethics? If you follow all applicable rules and
regulations, are you an ethical person?
======================================
=========
FIN 571 Week 1 DQ 2