Question: A B C D E F G H K L You've observed the following returns on Pine Computer's stock over the past five years: 8

A B C D E F G H K L You've observed the
A B C D E F G H K L You've observed the following returns on Pine Computer's stock over the past five years: 8 percent, -12 percent, 14 percent, 21 percent, and 16 percent. Suppose the average inflation rate over this; 2 period was 3.1 percent and the average T-bill rate over the period Iwas 3.9 percent. What was the average real return on the company's stock? What was the average nominal risk premium on the company's stock over this period? 3 4 Input area: Year Returns V 8% 8 2 -12% 9 3 14% 10 4 21% 11 5 16% .2 Average inflation 3.10% .3 Average T-bill rate 3.90%

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