Question
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -12 percent, 21 percent, 36 percent, and 19 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -12 percent, 21 percent, 36 percent, and 19 percent. Suppose the average inflation rate over this period was 3.9 percent and the average T-bill rate over the period was 4.6 percent. What was the average nominal risk premium on Crash-n-Burn's stock?
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AQA AS Accounting Unit 1 Introduction To Financial Accounting
Authors: Brendan Casey
1st Edition
1499789653, 978-1499789652
