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View previous attempt 3 Problem 12-10 Calculating Real Returns and Risk Premiums (LO1] 1 points You've observed the following returns on Crash-n-Burn Computer's stock over
View previous attempt 3 Problem 12-10 Calculating Real Returns and Risk Premiums (LO1] 1 points You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 18 percent. -3 percent, 16 percent, 11 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 5.5 percent. eBook Print a. What was the average real return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) a. Average real return b. Average nominal risk premium 7.20% 49:% Mc Graw HI
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