What was the average nominal risk premium on stock

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Reference no: EM13935167

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 18 percent, –14 percent, 20 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.4 percent. a. What was the average real return on Crash-n-Burn’s stock? b. What was the average nominal risk premium on Crash-n-Burn’s stock?

Reference no: EM13935167

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