Average nominal risk premium on crash-n-burn stock

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Reference no: EM131949767

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 2 percent, -12 percent, 23 percent, 16 percent, and 17 percent. The average inflation rate over this period was 3.6 percent and the average T-bill rate was 4.25 percent.

1. What was the average real return on Crash-n-Burn’s stock? (Do not round intermediate calculations.)

2. What was the average nominal risk premium on Crash-n-Burn’s stock? (Do not round intermediate calculations.)

Reference no: EM131949767

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