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Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return Year Return (%) (%) 2013 32.80

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Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return Year Return (%) (%) 2013 32.80 0.09 2014 12.20 0.09 2015 -2.90 0.09 2016 14.00 0.04 2017 23.00 0.06 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 < Required A Required B >

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