Find average real risk-free rate over time period


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.

What was the average real risk-free rate over this time period?

What was the average real risk premium?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find average real risk-free rate over time period
Reference No:- TGS0552449

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)