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Assume these are the stock market and Treasury bill returns for a 5-year period: YearStock Market Return (%)T-Bill Return (%) 2011 0.98 0.03 2012 16.06
Assume these are the stock market and Treasury bill returns for a 5-year period:
YearStock Market Return (%)T-Bill Return (%)
2011 0.98 0.03
2012 16.06 0.05
2013 33.06 0.07
2014 12.71 0.05
2015 0.67 0.21
a.What was the risk premium on common stock in each year?
Year Risk Premium
2011 ____ %
2012 ___ %
2013 ___%
2014 ____%
2015 ____ %
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