What was average real risk-free rate and premium

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Reference no: EM131078245

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 5.3 percent.

What was the average real risk-free rate over this time period? (Round your answer to 2 decimal places.

What was the average real risk premium? (Round your answer to 2 decimal places.)

Reference no: EM131078245

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