Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, 10 percent, 23 percent, 18 percent, and 17 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, 10 percent, 23 percent, 18 percent, and 17 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 4.35 percent. |
What was the average real return on the company's stock? |
What was the average nominal risk premium on the company's stock? |
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
