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P12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent. -8
P12-10 Calculating Real Returns and Risk Premiums [LO1] You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent. -8 percent, 29 percent, 14 percent, and 14 percent. The average inflation rate over this period was 3.6 percent and the average T-bill rate was 5.65 percent What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return] What was the average nominal risk premium on the company's stock
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