Yoursquove observed the following returns on crash-n-burn, Financial Management

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Yoursquove observed the following returns on crash-n-burn

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 13 percent, –13 percent, 20 percent, 25 percent, and 10 percent. Suppose the average inflation rate over this period was 3.0 percent and the average T-bill rate over the period was 3.3 percent.

What was the average nominal risk premium on Crash-n-Burn’s stock?

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Financial Management: Yoursquove observed the following returns on crash-n-burn

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