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You've observed the following returns on Pine Computer's stock over the past five years:-24.3 percent, 13.2 percent, 29.4 percent, 2.1 percent, and 21.1 percent.
You've observed the following returns on Pine Computer's stock over the past five years:-24.3 percent, 13.2 percent, 29.4 percent, 2.1 percent, and 21.1 percent. The average Inflation rate over this period was 3.21 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real risk-free rate over this time period? Note: 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? Note: 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 b. Average real risk premium %
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