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

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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, 28 percent, 20 percent, and 16 percent. The average inflation rate over this period was 3 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.)

7.19% 8.33% 7.57% 7.95% 14.12%

Requirement 2:

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

5.70% 0.76% 5.23% 4.66% 4.08%

Reference no: EM131907274

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