Question
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 8 percent, -12 percent, 20 percent, 30 percent, and 18 percent.Suppose
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 8 percent, -12 percent, 20 percent, 30 percent, and 18 percent.Suppose the average inflation rate over this period was 3 percent and the average T-bill rate over the period was 3.9 percent. What was the average real return on Crash-n-Burn's stock?
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
