Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 16 percent, 5 percent, 19 percent, 13 percent, and 10 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 16 percent, 5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 5.3 percent.
| What was the average real risk-free rate over this time period? What was the average real risk premium? |
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Project Finance
Authors: B Rajesh Kumar
1st Edition
3030967247, 978-3030967246
