Youve observed the following "nominal" returns on Crash-n-Burn Computers stock over the past five years: 5 percent, -11 percent, 29 percent, 16 percent, and 15 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 4.8 percent.

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.)

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