Real average risk free rate and average risk free premium

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Reference no: EM131073507

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –14 percent, 16 percent, 26 percent, and 10 percent. Suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.0 percent. What is the real average risk free rate and the average risk free premium?

Reference no: EM131073507

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