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: 14 percent, 7 percent, 17 percent, 15 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bill rate over the period was 5.1 percent. a. 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 premlum on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1decimal place, e.g., 32.1.)