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Assume these are the stock market and Treasury bill returns for a 5-year period YearStock Market Return Year 1 Year 2 Year 3 Year 4

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Assume these are the stock market and Treasury bill returns for a 5-year period YearStock Market Return Year 1 Year 2 Year 3 Year 4 Year 5 T-Bill Return 3.20 1.60 -35.63 30.60 15.26 2.48 18.56 07 09 a. What was the risk premium on common stock in each year? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk premium Year 1 32.43 % ear ear ear 4 ear b. 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 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.) Standard deviation

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