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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -14 percent, 20 percent, 33 percent, and 14 percent.Suppose
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -14 percent, 20 percent, 33 percent, and 14 percent.Suppose the average inflation rate over this period was 3.4 percent and the average T-bill rate over the period was 4.5 percent. What was the average nominal risk premiumon Crash-n-Burn's stock?
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