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You ve observed the following returns on Pine Computer s stock over the past five years: 8 percent, 1 2 percent, 1 4 percent, 2

Youve observed the following returns on Pine Computers stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. What was the average real return on the company's stock? What was the average nominal risk premium on the company's stock?

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