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* SHOW WORK PLEASE * You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, - 1 2 percent,

*SHOW WORK PLEASE*
You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, -12 percent, 14 percent, 21 percent, and 16 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent.
(1) What was the average nominal return on the stock?
0.094=9.4%
(2) What was the average real return on the stock?
0.0611=6.11%
(3) What was the average nominal risk premium?
0.053=5.3%
(4) How about average real risk premium?
2.13%
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