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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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