4. Risk premium (S7.1) Here are inflation rates and U.S. stock market and Treasury bill returns between 1929 and 1933:

Year Inflation, % Stock Market Return, % T-Bill Return, %

1929 –0.2 –14.5 4.8 1930 –6.0 –28.3 2.4 1931 –9.5 –43.9 1.1 1932 –10.3 –9.9 1.0 1933 0.5 57.3 0.3

a. What was the real return on the stock market in each year?