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Assume these are the stock market and Treasury bill returns for a 5-year period Stock Market T-Bill Return(%) Return( %) Year 2011 2012 2013 2014

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Assume these are the stock market and Treasury bill returns for a 5-year period Stock Market T-Bill Return(%) Return( %) Year 2011 2012 2013 2014 2015 1.70 0.20 0.13 0.05 0.07 -37.13 28.40 17.06 1.08 16.16 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.) Answer is complete and correct. Risk Premium Year 2011 2012 2013 2014 2015 (38.830 % 28.20 % 16.93% 1.00 % 16.09 % b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Average risk 4.68 % remium c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely Standard deviation 26.17X%

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