You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 percent, 13 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 5.3 percent.
What was the average real risk-free rate over this time period? (Round your answer to 2 decimal places.
What was the average real risk premium? (Round your answer to 2 decimal places.)