Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, 8 percent, 26 percent, 18 percent, and 15 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 5 percent, 8 percent, 26 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 3.6 percent.
What was the average real return on the company's stock?
What was the average nominal risk premium on the company's stock?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
