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You ve observed the following returns on Pine Computer s stock over the past five years: 1 0 percent, 1 0 percent, 1 7 percent,

Youve observed the following returns on Pine Computers 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.
a.
What was the average real risk-free rate over this time period? (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 real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)

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