2. Calculating Real Returns and Risk Premiums: In Problem 1, suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over the period was 5.1 percent.

a. What was the average real return on Mary Anns stock?

b. What was the average nominal risk premium on Mary Anns stock?

( Problem 1 - Calculating Returns and Variability: Youve observed the following returns on Mary Ann Data Corporations stock over the past five years: 34 percent, 16 percent, 19 percent, -21 percent, and 8 percent.

What was the arithmetic average return on Mary Anns stock over this five-year period?)