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You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 15 percent, -6 percent, 18 percent, 14 percent, and 10 percent.
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 15 percent, -6 percent, 18 percent, 14 percent, and 10 percent. Suppose the average Inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 5.2 percent. a. 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.) b. 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.) a. % Average real risk-free rate Average real risk premium b. 96
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