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Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 3 percent, -12 percent, 22 percent, 17 percent, and 13 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 3 percent, -12 percent, 22 percent, 17 percent, and 13 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate was 5 percent. Requirement 1: What was the average real return on Crash-n-Burns stock? (Do not round intermediate calculations.) Requirement 2: What was the average nominal risk premium on Crash-n-Burns stock? (Do not round intermediate calculations.)
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