Problem $12-10$ Calculating Real Returns and Risk Premiums $[$LO$1]$

You've observed the following returns on Pine Computer's stock over the past five years: $17$ percent, $-4$ percent, $20$ percent, $12$ percent, and $10$ percent. Suppose the average inflation rate over this period was $2\mathrm{.}7$ percent and the average T$-$bill rate over the period was $5\mathrm{.}4$ percent.

a$.$ What was the average real return on the company's stock? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What was the average nominal risk premium on the company's stock? $($Do not round intermediate calculations and enter your answer as a percent rounded to $1$ decimal place, e$.$g$.,32\mathrm{.}1.)$

a$.$ Average real retum

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$\%$

b$.$ Average nominal risk premium

$\%$