9. Calculating Returns and Variability You've observed the following returns on Yamauchi Corporation's stock over the past five years: -10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. LO 1 What was the arithmetic average return on the stock over this five-year period? a. b. What was the variance of the returns over this period? The standard deviation? 10. Calculating Real Returns and Risk Premiums For Problem 9, suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. LO1 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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9. Calculating Returns and Variability You've observed the following returns
on Yamauchi Corporation's stock over the past five years: – 10 percent,
24 percent, 21 percent, 11 percent, and 8 percent.
LO 1
a.
What was the arithmetic average return on the stock over this five-year
period?
What was the variance of the returns over this period? The standard
deviation?
b.
10. Calculating Real Returns and Risk Premiums For Problem 9, suppose the
average inflation rate over this period was 3.1 percent and the average T-bill
rate over the period was 4.1 percent.
LO 1
a.
What was the average real return on the stock?
b.
What was the average nominal risk premium on the stock?
nformation in Problem 10, what was the
Transcribed Image Text:9. Calculating Returns and Variability You've observed the following returns on Yamauchi Corporation's stock over the past five years: – 10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. LO 1 a. What was the arithmetic average return on the stock over this five-year period? What was the variance of the returns over this period? The standard deviation? b. 10. Calculating Real Returns and Risk Premiums For Problem 9, suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. LO 1 a. What was the average real return on the stock? b. What was the average nominal risk premium on the stock? nformation in Problem 10, what was the
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