You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent,...

 

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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -11 percent, 24 percent, 17 percent, and 13 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 3.8 percent. Requirement 1: What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select) Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select) You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -11 percent, 24 percent, 17 percent, and 13 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 3.8 percent. Requirement 1: What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select) Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select)

Answer rating: 100% (QA)

Requirement 1 To calculate the average real return on CrashnBurns stock we nee... View the full answer