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Determining the average real risk-free rate

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You've observed the following returns on crash-n-burn computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-Bill rae over the period was 5 period.

a. What was the average real risk-free rate over this time period?

b. What was the average real risk premium?

Reference no: EM132906361

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