Calculating Real Returns And Risk Premiums For Problem 9 Suppose

Calculating Real Returns and Risk Premiums for Problem 9, suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 percent.

a. What was the average real return on Crash-n-Burn’s stock?

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b. What was the average nominal risk premium on Crash-n-Bum s stock?

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