Problem

Calculating Real Returns and Risk Premiums In Problem 9, suppose the average inflati...

Calculating Real Returns and Risk Premiums In Problem 9, suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over the period was 5.1 percent.

a. What was the average real return on Mary Ann’s stock?

b. What was the average nominal risk premium on Mary Ann’s stock?

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