Question
Youve observed the following returns on Doyscher Corporations stock over the past five years: 25.8 percent, 14.2 percent, 31.4 percent, 2.6 percent, and 21.6 percent.
Youve observed the following returns on Doyscher Corporations stock over the past five years: 25.8 percent, 14.2 percent, 31.4 percent, 2.6 percent, and 21.6 percent. The average inflation rate over this period was 3.26 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?
What was the average real risk premium?
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Financial Intelligence For IT Professionals
Authors: Karen Berman, Joe Knight, John Case
1st Edition
1422119149, 9781422119143
