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You've observed the following returns on Yamauchi Corporation's stock over the past five years: -25.2 percent, 13.8 percent, 30.6 percent, 2.4 percent, and 21.4 percent.
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -25.2 percent, 13.8 percent, 30.6 percent, 2.4 percent, and 21.4 percent. The average inflation rate over this period was 3.24 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? (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 not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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