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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 3 percent, 13 percent, 29 percent, 20 percent, and 18 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 3 percent, 13 percent, 29 percent, 20 percent, and 18 percent. The average inflation rate over this period was 3.8 percent and the average T-bill rate was 5.05 percent. Requirement 1: What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.) Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.)
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