Yoursquove observed the following returns on doyscher, Financial Management

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Yoursquove observed the following returns on doyscher

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –25.8 percent, 14.2 percent, 31.4 percent, 2.6 percent, and 21.6 percent. The average inflation rate over this period was 3.26 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?

What was the average real risk premium?

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Financial Management: Yoursquove observed the following returns on doyscher

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Financial Management: Yoursquove observed the following returns on doyscher

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