Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  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: 17...

60.1K

Verified Solution

Question

Finance

image

You've observed the following returns on Pine Computer'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 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

Calculus
1.2K views

24 a Find the distance from the plane 2z 3y a to the plane 52...

Physics
1.2K views

hOlaf is standing on a sheet of ice that covers the football stadium parking lot in...

Psychology
1.2K views

What is the difference in cross-sectional, longitudinal and time-lag comparison research design? Explain the research designs and...

Biology
1.2K views

What is the difference between an initiative and a referendum An initiative calls for voters...

Basic Math
1.2K views

Record 3 5 Scor David Perez Find Complet Mar 03 9 37

Calculus
1.2K views

Find the point where the tangent line to y = x at x = 0.3...

Accounting
1.2K views

Target Costing Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel estimate that...

Accounting
1.2K views

Japan Company produces lamps that require 3 standard hours per unit at a standard hourly...

Accounting
1.2K views

First of all, I want to apologize for pasting this lengthy book. The app nor...

Accounting
1.2K views

QS 16-13 (Algo) Computing cash from asset sales LO P3

Finance
1.2K views

How long does a drawee (paying) bank have to review & authorize final payments for...

Finance
1.2K views

The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is...