Youve observed the following "nominal" returns on Crash-n-Burn Computers stock over the past five years: 3 percent, -9 percent, 28 percent, 21 percent, and 17 percent. The average inflation rate over this period was 4 percent and the average T-bill rate was 5.4 percent.

Requirement 1:

What was the average "real" return on Crash-n-Burns stock? Note: Use the Fisher Effect Formula from the Bond chapter to convert nominal to real rates of return. (Do not round intermediate calculations.)

(Click to select) 7.31% 7.69% 16.48% 8.46% 8.08%

Requirement 2:

What was the average nominal risk premium on Crash-n-Burns stock? (Do not round intermediate calculations.)

(Click to select) 4.69% 6.60% 5.35% 6.01% 0.77%