Problemyouve observed the following returns on crash-n-burn, Ask an Expert

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Problem:

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 19 percent, -13 percent, 16 percent, 21 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bill rate over the period was 4.5 percent

Required:

Question: What was the average real risk premium?

Note: Please show how you came up with the solution.

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Category:- Basic Finance
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