Question: PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES. You've observed the following returns on Crash-n-Burn Computer's
PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES.


You've observed the following returns on Crash-n-Burn Computer's stock over the past five years. The average inflation rate over this period was 3.5 percent and the average T-bill rate was 4.2 percent. What was the average real return on the stock? What was the average nominal risk premium on the stock? Year Returns 7% 1 -13% 2 21% 3 34% 4 15% Average inflation rate Average T-bill rate 3.5% 4.2% Complete the following analysis. Do not hard code values in your calculations. Make sure to use the "sample" Excel formulas in your calculations. Arithmetic average nominal return 19 20 Average real return 21 22 23 Average risk premium 24 25 26 27 Sheet1 + READY + 100% 3/3 Attempt(s) Hint Step: Use the AVERAGE function to calculate the arithmetic average return
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