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Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 12 percent, 9 percent, 20 percent, 17 percent, and 10 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 12 percent, 9 percent, 20 percent, 17 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.9 percent.
What was the average real risk-free rate over this time period? (Round your answer to 2 decimal places. (e.g., 32.16) |
Average real risk-free rate | % |
What was the average real risk premium? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Average real risk premium | % |
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