What was the average real risk premium

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Reference no: EM132970571

Question: You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12 percent, -12 percent, 19 percent, 24 percent, and 10 percent. Suppose the average inflation rate over this period was 2.5 percent and the average T-bill rate over the period was 3.2 percent.

a. What was the average real risk-free rate over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What was the average real risk premium?

Reference no: EM132970571

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