Youve observed the following "nominal" returns on Crash-n-Burn Computers stock over the past five years: 3 percent, -11 percent, 23 percent, 20 percent, and 13 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 5.55 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) 6.30% 6.00% 6.60% 5.70% 13.33%

Requirement 2:

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

(Click to select) 3.69% 2.88% 0.60% 3.28% 4.00%