What was the average real risk premium

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Reference no: EM131048147

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. The average inflation rate over this period was 3.33 percent and the average T-bill rate over the period was 4.3 percent.

Requirement 1: What was the average real risk-free rate over this time period?

Requirement 2: What was the average real risk premium?

Reference no: EM131048147

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