Question
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent, -13 percent, 21 percent, 35 percent, and 11 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent, -13 percent, 21 percent, 35 percent, and 11 percent. Suppose the average inflation rate over this period was 3.7 percent and the average T-bill rate over the period was 3.7 percent. What was the average nominal risk premium on Crash-n-Burn's stock?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
