Yoursquove observed the following returns on crash-n-burn, Financial Management

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Yoursquove observed the following returns on crash-n-burn

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, -9 percent, 23 percent, 19 percent, and 14 percent. The average inflation rate over this period was 3.5 percent and the average T-bill rate was 4.85 percent.

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?

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Financial Management: Yoursquove observed the following returns on crash-n-burn

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