Problem:
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 11 percent, -11 percent, 18 percent, 23 percent, and 10 percent. Suppose the average inflation rate over this period was 2.0 percent and the average T-bill rate over the period was 3.1 percent.
Requirement:
Question: What was the average real risk-free rate over this time period?
Question: What was the average real risk premium?
Note: Please show guided help with steps and answer.