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youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 4 percent, 13 percent, 26 percent, 21 percent, and 13 percent.
youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 4 percent, 13 percent, 26 percent, 21 percent, and 13 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 5.25 percent. What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return] What was the average nominal risk premium on the company's stock?
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