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Please explain in detail how you computed each question. You've observed the following returns on Yasmin Corporation's stock over the past five years: 13 percent,
Please explain in detail how you computed each question.
You've observed the following returns on Yasmin Corporation's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-bill rate over the period was 5 percent. What was the average real risk-free rate over this time period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Average real risk-free rate % What was the average real risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Average real risk premium %Step by Step Solution
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