Question: 3 . you ve observed the following returns on Pine Computer s stock over the past five years: 2 9 . 7 percent, 1 6

3. youve observed the following returns on Pine Computers stock over the past five years: 29.7 percent, 16.8 percent, 36.6 percent, 3.9 percent, and 22.9 percent. The average inflation rate over this period was 3.39 percent and the average T-bill rate over the period was 4.3 percent.
a. What was the average real risk-free rate over this time period?
b. What was the average real risk premium?

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