Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, -9 percent, 23 percent, 19 percent, and 14 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, -9 percent, 23 percent, 19 percent, and 14 percent. The average inflation rate over this period was 3.5 percent and the average T-bill rate was 4.85 percent.
What was the average real return on Crash-n-Burns stock?
What was the average nominal risk premium on Crash-n-Burns stock?
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Financial Management And Policy
Authors: James C. Van Horne
12th Edition
0130326577, 9780130326577
