Question
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent, -11 percent, 22 percent, 35 percent, and 12 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 9 percent, -11 percent, 22 percent, 35 percent, and 12 percent. Suppose the average inflation rate over this period was 3.9 percent and the average T-bill rate over the period was 4.4 percent. What was the average nominal risk premium on Crash-n-Burn's stock?
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Financial Reporting And Statement Analysis A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown
4th Edition
0030238110, 978-0030238116
