Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 12 percent, 12 percent, 19 percent, 24 percent, and 10 percent.
Youve observed the following returns on Crash-n-Burn Computers 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? (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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