What was average real return on crash-n-burn stock

Assignment Help Financial Management

Reference no: EM132046990

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 5 percent, -11 percent, 25 percent, 18 percent, and 14 percent. The average inflation rate over this period was 3.8 percent and the average T-bill rate was 5.8 percent.

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

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

Reference no: EM132046990

Questions Cloud

What personal challenges might you have with presenting : What practical steps could be taken to build a relationship with a follower of this worldview who might be a co-worker, neighbor, etc.?

State of economy probability of state of economy stock : Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.10 0.04 -0.18 Normal 0.70 0.08 0.12 Boom

What does this artifact mean to you : How has it inspired or moved you? Has this artifact helped make your life or the life of others better?

What is the required rate of return on the stock market : Portofolio P has 30% invested in Stock X and 70% in Stock Y. The risk-free rate id 6% and the market risk premium is 5%. Portofolio P has a required return.

What was average real return 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?

What is the break-even point in dollars sales : The Poseidon Swin Company produces swim trunks. The average selling price for one of their swim trunks is $36.07. The variable cost per unit is $27.66

What do you think ex-dividend price will be : Timsang, Inc., has declared a $6.50 per share dividend. What do you think the ex-dividend price will be?

Find the annual total costs of post card inventory : Post Card Depot, an large retailer of post cards, orders 9,842,970 post cards per year from its manufacturer. Post Card Depot plans on ordering post card.

Create a list of three points that you would emphasize : CIS 349 : Create a list of three points that you would emphasize when explaining this subject to employees. Justify your choices.

User Account

All Pages