Question
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 20 percent, 12 percent, 17 percent, 20 percent, and 10 percent.
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 20 percent, 12 percent, 17 percent, 20 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 4.6 percent.
What was the average real risk-free rate over this time period?
What was the average real risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
I need how to know how to do this step by step.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started