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Roger Williams Univerity Operations And Supply Chain Management Assignment Help - (average real return)


Question - s
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 18
percent, '3 percent, 16 percent, 11 percent, and 10 percent. Suppose the average inflation rate over
this period was 3.2 percent and the average T-bill rate over the period was 5.5 percent.

a. What was the average real return on Crash-n-Burn's stock? (Round your answer to 2 decimal
places. (e.g., 32.16))

Average real return %

b. What was the average nominal risk premium on Crash-n-Burn's stock? (Round your answer to 1
decimal place. (e.g., 32.1))

Average nominal risk %

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