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 Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
