Question: You've observed the following returns on Pine Computer's stock over the past five years: - 2 5 . 5 percent, 1 4 percent, 3 1
You've observed the following returns on Pine Computer's 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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b What was the average real risk premium?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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