What was the average real return on crash-n-burn’s stock

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Reference no: EM131059786

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –7 percent, 17 percent, 15 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bill rate over the period was 5.1 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: EM131059786

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