Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you ve observed the following returns on pine comp

You ve observed the following returns on Pine Computer's stock over the past five years:...

90.2K

Verified Solution

Question

Accounting

image
You ve observed the following returns on Pine Computer's stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. o. What was the average real return on the company's 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 company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Ruff Motors needs to select an assembly line for producing their new SUV. They have two...

General Management
1.2K views

using the industry life cycle model, explain how the threats and opportunities for existing firms in...

Advance Math
1.2K views

What is overmatching versus undermatching? Give an example of overmatching and undermatching (with hypothetical proportions) that might...

Physics
1.2K views

1 Plates of a parallel plate capacitor have area A and distance between them is...

Physics
1.2K views

A single slit of width 0 20 mm is illuminated with the light of wavelength...

Algebra
1.2K views

Solving Systems of Linear lations olve the system of equations graphically If the systen ngle...

Algebra
1.2K views

Enter the value of each expression in the blank provided. If the expression is undefined,...

Algebra
1.2K views

y 2sin 2 3 x Give the exact values not decim

Accounting
1.2K views

Income statement and balance sheet data for Great Adventures, Inc., are provided below. ...

Accounting
1.2K views

What are the similarities and differences in recording transactions for governmental and for-profit companies? Give...

Accounting
1.2K views

Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful...

Accounting
1.2K views

On January 1, 2020, Swifty Corporation had 79,000 shares of $1 par value common stock...