Assume these are the stock market and treasury bill returns for a 5-year period:

Year Stock Market Return (%) T-Bill Return (%)

2011 -36.23 2.50

2012 29.50 0.90

2013 15.96 0.18

2014 1.78 0.10

2015 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.)

Year Risk Premium

2011 _________%

2012 _________%

2013 _________%

2014 _________%

2015 __________%

B. what was the average risk premium? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Answer: Average Risk Premium __________%

C. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Answer: Standard Deviation ______%