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Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10
Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent. Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 5.2 percent.
What was the average real risk-free rate over this time period?
What was the average real risk premium?
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