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Problem 10-11 Calculating Real Rates You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 12 percent, -12 percent, 19
Problem 10-11 Calculating Real Rates You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 12 percent, -12 percent, 19 percent, 24 percent, and 10 percent. Suppose the average inflation rate over this period was 2.5 percent and the average T-bill rate over the period was 3.2 percent. What was the average real risk-free rate 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.) What was the average real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real risk-free rate Average real risk premium % %
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