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Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return (%) 0.13 Year 2013 2014 2015 2016 2017 Stock
Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return (%) 0.13 Year 2013 2014 2015 2016 2017 Stock Market Return (%) 33.70 13.30 -3.60 14.70 24.20 0.13 0.13 0.08 0.10 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C 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.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % Complete this question by entering your answers in the tabs below. Required A Required B Required C 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 %
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