Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent. Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 5.2 percent.
| a) What was the average real risk-free rate over this time period? b) What was the average real risk premium? |
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
