Problem $10-10$ Calculating Real Returns and RIsk Premlums

You've observed the following returns on SkyNet Data Corporation's stock over the past

five years: $14$ percent, $-14$ percent, $16$ percent, $26$ percent, and $10$ percent. Suppose the

average inflation rate over this period was $3\mathrm{.}5$ percent and the average T$-$bill rate over

the period was $4$ percent.

a$.$ What was the average real return on the company's stock? $($Do not round

Intermedlate calculatlons and enter your answer as a percent rounded to $2$ declmal

places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What was the average nominal risk premium on the company's stock? $($Do not round

Intermedlate calculations and enter your answer as a percent rounded to $1$ declmal

place, e$.$g$.,32\mathrm{.}1.)$