Question: Youve observed the following returns on Pine Computers stock over the past five years: 25.2 percent, 13.8 percent, 30.6 percent, 2.4 percent, and 21.4 percent.
Youve observed the following returns on Pine Computers stock over the past five years: 25.2 percent, 13.8 percent, 30.6 percent, 2.4 percent, and 21.4 percent. The average inflation rate over this period was 3.24 percent and the average T-bill rate over the period was 4.3 percent. 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 2 decimal places, e.g., 32.16. 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.
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