Youve observed the following returns on staverosky, Ask an Expert

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You've observed the following returns on Staverosky Corporation's stock over the past five years: -25.5 percent, 14.0 percent, 31.0 percent, 2.5 percent, and 21.5 percent. The average inflation rate over this period was 3.25 percent and the average T-bill rate over the period was 4.3 percent.

(a) What was the average real return on the stock?

(b) What was the average nominal risk premium on the stock?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9883937

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