What was the average nominal risk premium on crash-n-burns


You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 7 percent, -14 percent, 20 percent, 36 percent, and 15 percent. Suppose the average inflation rate over this period was 3.4 percent and the average T-bill rate over the period was 4.4 percent. What was the average nominal risk premium on Crash-n-Burn's stock? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What was the average nominal risk premium on crash-n-burns
Reference No:- TGS02343262

Expected delivery within 24 Hours