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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -8 percent, 25 percent, 14 percent, and 17 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -8 percent, 25 percent, 14 percent, and 17 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 5.1 percent. What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.) What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.)
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