Youve observed the following returns on crash-n-burn


You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 12 percent, -9 percent, 20 percent, 17 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.9 percent

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

What was the average real risk premium?

 

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Finance Basics: Youve observed the following returns on crash-n-burn
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