You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.5 percent, 16.0 percent, 35.0 percent, 3.5 percent, and 22.5 percent. The average inflation rate over this period was 3.35 percent and the average T-bill rate over the period was 4.3 percent.
Requirement 1: What was the average real risk-free rate over this time period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average real risk-free rate %
Requirement 2: What was the average real risk premium? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average real risk premium %