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You've observed the following returns on Pine Computer's stock over the past five years: 16 percent, -5 percent, 19 percent, 13 percent, and 10 percent.

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You've observed the following returns on Pine Computer's stock over the past five years: 16 percent, -5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 5.3 percent a. What was the average real risk-free rate over this time period? (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? (Do nofround intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Average real risk-free rate 3.03% b. Average real risk premium 5.30 %

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