Calculating Real Returns and Risk Premiums for Problem 9, suppose the average inflation rate over this period

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Calculating Real Returns and Risk Premiums for Problem 9, suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 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-Bum s stock?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 03, 2011 03:29 AM

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Calculating Real Returns and Risk Premiums for Problem 9, suppose the average inflation rate over this period

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