You’ve observed the following returns on Barnett Corporation’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.
What was the average real risk-free rate over this time period? (Do not round intermediate calculations)
Average real risk-free rate
What was the average real risk premium? (Do not round intermediate calculations)
Average real risk premium