Youâve observed the following returns on Crash-n-Burn Computerâs stock over the past five years: 13 percent, â13 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?
| Youâve observed the following returns on Crash-n-Burn Computerâs stock over the past five years: 13 percent, â13 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.
|
Related questions
Youâve observed the following returns on Crash-n-Burn Computerâs stock over the past five years: 12 percent, â9 percent, 20 percent, 17 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.9 percent.
| What was the average real risk-free rate over this time period? (Round your answer to 2 decimal places. (e.g., 32.16) |
| Average real risk-free rate | % |
| What was the average real risk premium? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Average real risk premium | % |
