Question
Youve observed the following returns on Staverosky Corporations stock over the past five years: 27.0 percent, 15.0 percent, 33.0 percent, 3.0 percent, and 22.0 percent.
Youve observed the following returns on Staverosky Corporations stock over the past five years: 27.0 percent, 15.0 percent, 33.0 percent, 3.0 percent, and 22.0 percent. The average inflation rate over this period was 3.30 percent and the average T-bill rate over the period was 4.3 percent. Requirement 1: What was the average real risk-free rate over this time period? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Average real risk-free rate % Requirement 2: What was the average real risk premium? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Average real risk premium %
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