Question
Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return T-Bill Return Year 1 ? 34.73 3.70
Assume these are the stock market and Treasury bill returns for a 5-year period: |
Year | Stock Market Return | T-Bill Return | ||||||
Year 1 | ? | 34.73 | 3.70 | |||||
Year 2 | 31.30 | .10 | ||||||
Year 3 | 14.96 | .24 | ||||||
Year 4 | 2.78 | .09 | ||||||
Year 5 | 19.06 | .11 | ||||||
a. | What was the risk premium on common stock in each year? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) |
Year | Risk premium |
Year 1 | % |
Year 2 | % |
Year 3 | % |
Year 4 | % |
Year 5 | % |
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 | % |
PLEASE HELP WITH PART C!! THATS WHAT I REALLY NEED
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