Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 2 percent, -12 percent, 27 percent, 20 percent, and 17 percent. The average inflation rate over this period was 3.8 percent and the average T-bill rate was 4.35 percent.

Requirement 1:

What was the average real return on Crash-n-Burns stock? (Do not round intermediate calculations.)

Requirement 2:

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