Question: Problem 1 0 - 1 1 Calculating Real Rates [ LO 1 ] You've observed the following returns on Pine Computer's stock over the past

Problem 10-11 Calculating Real Rates [LO 1] You've observed the following returns on Pine Computer's stock over the past five years: -29.4 percent, 16.6 percent, 36.2 percent, 3.8 percent, and 22.8 percent. The average inflation rate over this period was 3.38 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real risk-free rate over this time period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to \(\mathbf{2}\) decimal places, e.g.,32.16. b. What was the average real risk premium? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16. Answer is complete but not entirely correct.
Problem 1 0 - 1 1 Calculating Real Rates [ LO 1 ]

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