Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, 15 percent, 25 percent, 19 percent, and 12 percent.
| Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, 15 percent, 25 percent, 19 percent, and 12 percent. The average inflation rate over this period was 4 percent and the average T-bill rate was 5.75 percent. |
| What was the average real return on the company's stock? |
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| What was the average nominal risk premium on the company's stock? |
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
