What was average nominal risk premium on crash-n-burn stock

Assignment Help Financial Management

Reference no: EM131612199

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, -15 percent, 26 percent, 16 percent, and 16 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 5.3 percent.

Requirement 1: What was the average real return on Crash-n-Burn’s stock?

Requirement 2: What was the average nominal risk premium on Crash-n-Burn’s stock?

Reference no: EM131612199

Questions Cloud

What are the new profit-maximizing quantity and price : Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule, and columns 2 and 3 set out the total cost.

What common patterns of behavior and methods : What common patterns of behavior and methods can you identify across regions and movements

Why are french wines able to command a price premium : Why are French wines able to command a price premium in export markets? What are the competitive advantages and disadvantages of the Old World vineyards?

Security has an expected rate of return : A security has an expected rate of return of .13 and a beta of 2.1.

What was average nominal risk premium on crash-n-burn stock : What was the average real return on Crash-n-Burn’s stock? What was the average nominal risk premium on Crash-n-Burn’s stock?

Partial communications management plan : The team members include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a business analyst

What is the expected return of portfolio : A portfolio consists of the following four stocks. What is the expected return of the portfolio?

Cirt monitoring and security tasks : 1. Identifying where cirt monitoring and security tasks occur throughout an it infrastructure.

Analyze the role of software in project management : Analyze the role of software in project management. How project management techniques can be used to improve the completion of projects.

User Account

All Pages