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3. The following table gives actual data on the U.S. CPI and the S&P 500 total return index (SPTRI).A. (20) Use this data to compute the average annual nominal return and real return for two consecutive 1-year holding period returns of a stock portfolio that matches the S&P 500 total return index. (for example you could compute 201 1-12 and 2012-201 3) Please use continuous compounding. Express your final answer in percentage.B. (10) Now compute the average annual real return to a 2-year holding -period portfolio of your two consecutive years.C. (10) You have a friend who has been studying the stock market for the last few years and is about to invest $10,000 in a highly diversified portfolio. After 10 years, your friend expects to have over $66,000 in real dollars. You recall from your favorite report in Econ 135 that the average 10 year holding period return is about 7% with a standard deviation of 6%. Do you think your friend?s expectations are realistic? Why or why not