You've Observed the Following Returns on Crash-N-Burn Computer's Stock Over

Multiple Choice

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 7 percent, 13 percent, 19 percent, −8 percent, and 15 percent. Suppose the average inflation rate over this time period was 2.6 percent and the average T-bill rate was 3.1 percent. Based on this information, what was the average nominal risk premium?

A) 6.6 percent
B) 6.1 percent
C) 9.2 percent
D) 1.2 percent
E) 3.5 percent