Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, 10
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Question:
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, −10 percent, 23 percent, 18 percent, and 17 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 4.35 percent.
What was the average real return on the company's stock?
What was the average nominal risk premium on the company's stock?
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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