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You've observed the following returns on Pine Computer's stock over the past five years: - 2 5 . 2 percent, 1 3 . 8 percent,

You've observed the following returns on Pine Computer's stock over the past five years: -25.2 percent, 13.8 percent, 30.6 percent,
2.4 percent, and 21.4 percent. The average inflation rate over this period was 3.24 percent and the average T-bill rate over the period
was 4.3 percent.
a. What was the average real return on the stock?
Note: 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 nominal risk premium on the stock?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
a. Average real return
b. Average nominal risk premium
You've observed the following returns on Pine Computer's stock over the past five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. The average inflation rate over this period was 3.32 percent and the average T-bill rate over the period was 4.3 percent.
a. What was the average real return on the stock?
Note: 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 nominal risk premium on the stock?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
\table[[a. Average real return,5.88,%
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