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Problem 1 2 - 1 0 Calculating Real Returns and Risk Premiums LO 1 ] You've observed the following returns on Pine Computer's stock over

Problem 12-10 Calculating Real Returns and Risk Premiums LO1] You've observed the following returns on Pine Computer's stock over the past five years 10 percent-10 percent, 17 percent ,22 percent, and 10 percent Suppose the average inflation rate over this period was 1.5 percent and the average T- bill rate over the period was 3 percent What was the average real return on the company's stock? (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 nominal risk premium on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g.,32.1.)

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