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Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 17 percent, 15 percent, 19 percent, 29 percent, and 10

Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 17 percent, 15 percent, 19 percent, 29 percent, and 10 percent. Suppose the average inflation rate over this period was 2.6 percent and the average T-bill rate over the period was 4.3 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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