You've observed the following returns on you Yamauchi corporations stock over the past five years: -10%, 24%, 21%, 11%, and 8%.The arithmetic average return on the stock is 10.8%. The variance of the returns is 0.01797.The standard deviation is 13.41%(Approx).Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent.

a)What was the average real risk premium?

b)What was the average nominal risk premium on the stock?