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Business, 04.12.2019 07:31 htorres2p8urw0

You’ve observed the following returns on crash-n-burn computer’s stock over the past five years: 8 percent, −15 percent, 19 percent, 31 percent, and 21 percent. suppose the average inflation rate over this period was 3.1 percent and the average t-bill rate over the period was 3.9 percent.

a.
what was the average real return over this time period? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

b. what was the average nominal risk premium over this time period? (do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e. g., 32.1.)

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You’ve observed the following returns on crash-n-burn computer’s stock over the past five years: 8...
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