Question
Youve observed the following returns on Yasmin Corporations stock over the past five years: 14 percent, 14 percent, 16 percent, 26 percent, and 10 percent.
Youve observed the following returns on Yasmin Corporations 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real risk-free rate % What was the average real risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real risk premium %
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