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You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 2 0 percent, - 1 2 percent, 1 7 percent,

You've observed the following returns on SkyNet Data Corporation's stock over the past
five years: 20 percent, -12 percent, 17 percent, 20 percent, and 10 percent. Suppose the
average inflation rate over this period was 1.7 percent and the average T-bill rate over
the period was 4.6 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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