You have the following data:

• expected annual return on an index of common stocks: 10.9%
• risk-free rate, i.e., annual rate of return on U.S. T-bills: 2.7%
• expected annual inflation rate: 8.1%

The annual returns on the stocks and T-bills are nominal annual rates. Calculate the annual risk premium on common stocks.

Express your answer in percent to two decimal places. Do not type the percent sign. For example, if you calculate 8.75%, then type 8.75