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LETS TRY THIS AGAIN.... I NEED THE *****AVERAGE REAL RISK FREE RATE******** AND THE *******AVERAGE REAL RISK PREMIUM********** 8.9 DOESNT WORK SOOO S12-11 Calculating Real
LETS TRY THIS AGAIN.... I NEED THE *****AVERAGE REAL RISK FREE RATE******** AND THE *******AVERAGE REAL RISK PREMIUM**********
8.9 DOESNT WORK SOOO
S12-11 Calculating Real Rates [LO1] 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.) Answer is complete but not entirely correct. Average real risk-free rate Average real risk premium 9.41 $ % 8.90 %Step by Step Solution
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