You've Observed the Following Returns on Crash-N-Burn Computer's Stock Over

question 92

Multiple Choice

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 3 percent,-10 percent,24 percent,22 percent,and 12 percent.Suppose the average inflation rate over this time period was 3.6 percent and the average T-bill rate was 4.8 percent.Based on this information,what was the average nominal risk premium?

• A)5.15 percent
• B)5.40 percent
• C)6.01 percent
• D)6.37 percent
• E)6.60 percent

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