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Youve observed the following returns on Yamauchi Corporations stock over the past five years: 24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent.
Youve observed the following returns on Yamauchi Corporations stock over the past five years: 24.6 percent, 13.4 percent, 29.8 percent, 2.2 percent, and 21.2 percent. The average inflation rate over this period was 3.22 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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