1. Calculate the holding period return for US treasury bills for the 7 year holding period of 1980 through 1986

2. Using the average US treasury Bill rate as a proxy rate, what was the average risk premium for small company common stocks for the 7 year period

3. Using the average US treasury Bill rate as a proxy rate, what was the average risk premium for Long term corporate bonds for the 7 year period

The following data are the retums for 1980 through 1986 on five types ofcapital-market instruments: common stocks, small-capitilzation stocks, long-temm corporate bonds, long-tem US- government bonds, and U.S. Treasury Bills. You may wish to use a spreadsheet program to make your calculations Common Small Long-term Long-termU S. Treasury Year Stock Stocks Corporate Government Bills Bonds Bonds 0.1124 1980 0.3242 0.3988 -0.0262 -0.0395 0.0185 0.1471 1981 -0.0491 0.1388 -0.0096 1982 0.2141 0.2801 0.4379 0.4035 0.1054 1983 0.0068 0.0880 0.2251 0.3967 0.0470 1984 0.1543 0.0985 0.0627 -0.0667 0.1639 1985 0.3216 0.2466 0.3090 0.3097 0.0772 1986 0.2444 0.1847 0.0685 0.1985 0.0616