The boss observed the following returns on Micro-n-Soft Computer's stock over the past five years: 8 percent,
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Question:
The boss observed the following returns on Micro-n-Soft Computer's stock over the past five years: 8 percent, -12 percent, 20 percent, 37 percent, and 16 percent. Suppose the average inflation rate over this period was 3.69 percent and the average T-bill rate over the period was 3.71 percent. What was the average real risk premium over this time period? (Don't round calculations)
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