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Youve observed the following returns on Pine Computers stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent.

Youve observed the following returns on Pine Computers stock over the past five years: 8 percent, 12 percent, 14 percent, 21 percent, and 16 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. a. What was the average real risk-free rate over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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