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You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 1 4 percent, - 1 4 percent, 1 6 percent,

You've observed the following returns on SkyNet Data Corporation's stock over the past
five years: 14 percent, -14 percent, 16 percent, 26 percent, and 10 percent. Suppose the
average inflation rate over this period was 3.5 percent and the average T-bill rate over
the period was 4 percent.
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.)
What was the average real risk premium? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.) Please answer the picture provided with the answers being in the box
image text in transcribed

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