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You've observed the following returns on Pine Computer's stock over the past five years: 1 8 percent, - 1 4 percent, 2 0 percent, 2

You've observed the following returns on Pine Computer's stock over the past five years:
18 percent, -14 percent, 20 percent, 22 percent, and 10 percent. Suppose the average
inflation rate over this period was 3.1 percent and the average T-bill rate over the period
was 4.4 percent.
a. What was the average real return on the company's stock? (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 company's stock? (Do not round
intermediate calculations and enter your answer as a percent rounded to 1 decimal
place, e.g.,32.1.)
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