You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -15 percent, 26 percent, 14 percent, and 17 percent. The average inflation rate over this period was 3 percent and the average T-bill rate was 3.95 percent.
Requirement 1: What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.)
Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.)