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You ve observed the following returns on Pine Computer s stock over the past five years: 2 8 . 8 percent, 1 6 . 2

Youve observed the following returns on Pine Computers stock over the past five years: 28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. The average inflation rate over this period was 3.36 percent and the average T-bill rate over the period was 4.3 percent.
What was the average real risk-free rate over this time period?
Note: 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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.You've observed the following returns on Pine Computer's stock over the past
five years: -28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6
percent. The average inflation rate over this period was 3.36 percent and the
average T-bill rate over the period was 4.3 percent.
a. What was the average real risk-free rate over this time period?
Note: 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 real risk premium?
Note: Do not round intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g.,32.16.
Answer is complete but not entirely correct.
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