8.

Consider the following table for a period of six years.

Returns
Year	Large-Company Stocks	U.S. Treasury Bills
Year 1			15.49	%		7.45	%
Year 2			26.71			8.07
Year 3			37.39			6.03
Year 4			24.09			5.87
Year 5			7.48			5.53
Year 6			6.73			7.88

Requirement 1:

Calculate the arithmetic average returns for large-company stocks and T-bills over this time period.(Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

	Arithmetic average returns
Large-company stock	%
T-bills	%

Requirement 2:

Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period.(Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

	Standard deviation
Large-company stock	%
T-bills	%

Requirement 3:
Calculate the observed risk premium in each year for the large-company stocks versus the T-bills.
(a)	What was the arithmetic average risk premium over this period?(Negative amount should be indicated by a minus sign.Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

Risk premium

%

(b)	What was the standard deviation of the risk premium over this period?(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

Risk premium standard deviation

%