Question: 3 . you ve observed the following returns on Pine Computer s stock over the past five years: 2 9 . 7 percent, 1 6
youve observed the following returns on Pine Computers stock over the past five years: percent, percent, percent, percent, and percent. The average inflation rate over this period was percent and the average Tbill rate over the period was percent.
a What was the average real riskfree rate over this time period?
b What was the average real risk premium?
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