Calculating Real Rates

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Problem 10-11 Calculating Real Rates [LO 1] You%u2019ve observed the following returns on Staverosky Corporation%u2019s stock over the past five years: %u201327.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. The average inflation rate over this period was 3.32 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 include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Average real risk-free rate % Requirement 2: What was the average real risk premium? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Average real risk premium % Jan 17 2014 02:09 PM

 

Solution ID:609203 | This paper was updated on 26-Nov-2015

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