What was average real risk-free rate over this time period

Assignment Help Financial Management

Reference no: EM132010617

Calculating Real Rates

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 17 percent, –4 percent, 20 percent, 12 percent, and 10 percent. Suppose the average inflation rate over this period was 2.7 percent and the average T-bill rate over the period was 5.4 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 %

Reference no: EM132010617

Questions Cloud

Determine the capitalized cost of a power plant : Determine the capitalized cost of a power plant which requires PhP10,000,000 for original construction with a PhP500,000 operating

What would make this gain in well-being more likely : Explain why the long-term drought in the region might lead to an increase in the region's well-being or welfare. What would make this gain in well-being

What would be new zombie real gdp : If work hours in New Zombie are 200 in year 1 and productivity is $18 per hour worked.

Mexico to catch up to the living standard of america : If these rates continue for long periods of time, how many years will it take for Mexico to catch up to the living standard of America?

What was average real risk-free rate over this time period : What was the average real risk-free rate over this time period? What was the average real risk premium?

What is the growth rate of the economy real gdp : An economy's real GDP is $46,000 in year 1 and $49,200 in year 2. What is the growth rate of its real GDP?

What is the amount of america net exports : Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year.

What was arithmetic average return on crash-n-burn stock : What was arithmetic average return on Crash-n-Burn’s stock over this five-year period? What was standard deviation of Crash-n-Burn’s returns over this period?

What incentive conflict was being controlled by loyalty : What incentive conflict was being controlled by these loyalty payments What advice did Intel ignore when they adopted this practice

User Account

All Pages