What was the average nominal risk premium

Assignment Help Finance Basics

Reference no: EM131926445

Question: 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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Reference no: EM131926445

Questions Cloud

What is the stock after taking flotation costs into account : Thurman industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $105.20.

Which year should he report the income from project : The client paid Larry's bill in 2017. In which year should he report the income from this project?

What is the work done by the kinetic friction force : What is the work done by the kinetic friction force after you stop pushing the box (µk = 0.60)?

Write a program to coordinate the barber and the customers : Write a program to coordinate the barber and the customers. A report which clearly describes the design and description of your software components.

What was the average nominal risk premium : What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal)

Calculations for amount of property-plant and equipment : Calculations for the amount of property, plant, and equipment and the annual depreciation for the project

How much kinetic energy would a proton acquire : How much kinetic energy would a proton acquire, starting at rest at point B and moving to point A?

How much do you have to save per month : You are 30 years old today. You want to retire at the age of 55. You expect to live until age 90. You would like to have a monthly income of $11,000 per month.

Right hand reaction time : Suppose you drop the meterstick and it falls 25.0 cm for your left hand but only 15.0 cm for you right hand. How much faster was your right hand reaction

User Account

All Pages