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Assume these are the stock market and Treasury bill returns for a 5 - year period: Year Stock Market Return ( % ) T -
Assume these are the stock market and Treasury bill returns for a year period:
Year Stock Market Return TBill Return
Required:
What was the risk premium on common stock in each year?
What was the average risk premium?
What was the standard deviation of the risk premium?
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Step: 1
To calculate the risk premium on common stock in each year we need to subtract the riskfree rate TBi...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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