Youve observed the following returns on crash-n-burn

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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 18 percent, -3 percent, 16 percent, 11 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 5.5 percent.

a.What was the average real return on Crash-n-Burn's stock? (Round your answer to 2 decimal places. (e.g., 32.16))

Average real return %

b.What was the average nominal risk premium on Crash-n-Burn's stock?

Reference no: EM13616741

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