========================================================= FIN 571 Week 1 DQ 1
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.)
========================================================= FIN 571 Week 1 DQ 1
FOR MORE CLASSES VISIT www. fin571tutor. com