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Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, -15 percent, 26 percent, 16 percent, and 16 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, -15 percent, 26 percent, 16 percent, and 16 percent. The average inflation rate over this period was 3.9 percent and the average T-bill rate was 4.5 percent. |
Requirement 1: |
What was the average real return on Crash-n-Burns stock? (Do not round intermediate calculations.) |
(Click to select) 13.87% 6.03% 5.76% 5.21% 5.49% |
Requirement 2: |
What was the average nominal risk premium on Crash-n-Burns stock? (Do not round intermediate calculations.) |
(Click to select) 3.62% 4.13% 0.55% 4.64% 5.10% |
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