Question: 6. Award: 7.69 points Problem 12-10 Calculating Real Returns and Risk Premiums (L01) You've observed the following nominal returns on Regina Computer's stock over the

6. Award: 7.69 points Problem 12-10 Calculating Real Returns and Risk Premiums (L01) You've observed the following nominal returns on Regina Computer's stock over the pas five years: 18%, -14%, 20%, 22%, and 10%. suppose the average inflation rate over thi period was 3.1% and the average T-bill rate over the period was 4.4%. a. What was the average real return on Regina's stock? (Do not round intermediate calculations Round the final answer to 2 decimal places.) Average real return % b. What was the average nominal risk premium on Regina's stock? (Do not round intermediate calculations Round the final answer to 2 decimal places.) Average nominal risk premium % References Worksheet Problem 12-10 Calculating Real Returns and Risk Premiums (L01) Learning Objective: 12-01 How to calculate the return on an investment

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4. Explain the strengths and weaknesses of each approach.

d. Describe any challenges in trying to communicate. If there were no challenges, explain why you think it was so easy.

3. Identify the methods used within each of the three approaches.