Given the information in Problem 10, what was the average real risk-free rate over this time period?
Question:
Given the information in Problem 10, what was the average real risk-free rate over this time period? What was the average real risk premium?
Data From Problem 10:
For Problem 9, suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 percent.
Data From Problem 9:
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 7 percent, −12 percent, 11 percent, 38 percent, and 14 percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted: