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P12-10 Calculating Real Returns and Risk Premiums (LO1) You've observed the following nominal returns on Crash-n-Burn Computer's stock over the past five years: 3 percent,

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P12-10 Calculating Real Returns and Risk Premiums (LO1) You've observed the following "nominal" returns on Crash-n-Burn Computer's stock over the past five years: 3 percent, -14 percent, 23 percent, 20 percent, and 12 percent. The average inflation rate over this period was 4 percent and the average T-bill rate was 4.35 percent. Requirement 1: What was the average "real" return on Crash-n-Burn's stock? Note: Use the Fisher Effect Formula from the Bond chapter to convert nominal to real rates of return. (Do not round intermediate calculations.) (Click to select) : Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round Intermediate calculations.) (Click to select) Requirement 1: What was the average "real" return on Cra Formula from the Bond chapter to convert Intermediate calculations.) HAH w (Click i select) 4.85% 13.15% 5.08% 4.38% 4.62% verage nominal risk pren lculations.) Requirement 2: What was the average nominal risk pre intermediate calculations.) PELA Click to select 4.40% 3.60% 3.16% 4.05% 0.46%

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