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You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –26.1 percent,...

You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –26.1 percent, 14.4 percent, 31.8 percent, 2.7 percent, and 21.7 percent. The average inflation rate over this period was 3.27 percent and the average T-bill rate over the period was 4.3 percent.

a. What was the average real risk-free rate over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What was the average real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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