What was average real risk premium

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Reference no: EM131530523

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 13 percent, –13 percent, 20 percent, 25 percent, and 10 percent. Suppose the average inflation rate over this period was 3 percent and the average T-bill rate over the period was 3.3 percent.

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

B. What was the average real risk premium?

Reference no: EM131530523

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