Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 6 percent, -13 percent, 27 percent, 22 percent, and 13 percent. The average inflation rate over this period was 3.4 percent and the average T-bill rate was 4.2 percent.

Requirement 1:

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

(Click to select)7.72%7.35%14.77%8.09%6.98%

Requirement 2:

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

(Click to select)4.83%0.74%6.19%6.80%5.51%