Youve observed the following returns on Pine Computers stock over the past five years: 15 percent, 15 percent, 17 percent, 27 percent, and 10 percent. Suppose the average inflation rate over this period was 1.6 percent and the average T-bill rate over the period was 4.1 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.)

a. Average real risk-free rate _____%

b. Average real risk premium _____%