Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2011 2012 2013 2014 2015 Stock Market T-Bill Return Return
Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2011 2012 2013 2014 2015 Stock Market T-Bill Return Return (%) (%) -36.23 2.50 29.50 0.90 15.96 0.18 1.78 0.10 17.26 0.12 a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Risk Premium Year 2011 % 2012 % 2013 % 2014 % 2015 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average risk premium c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started