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You've observed the following returns on Pine Computer's stock over the past five years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5
You've observed the following returns on Pine Computer's stock over the past five years: -28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. The average inflation rate over this period was 3.35 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. Answer is not complete. a. Average real risk-free rate b. Average real risk premium 0.93 % %
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