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

Year		Stock Market Return (%)			T-Bill Return (%)
2013			32.70			0.08
2014			12.10			0.08
2015			2.80			0.08
2016			13.80			0.26
2017			22.50			0.28

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.)

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		%

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

%

What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation

%