1. Calculate the geometric average of stock returns and the geometric average of bond returns using the data from the 10 years below. Then calculate the risk premium using the geometric averages. Compare this to the risk premium using arithmetic averages.

Year Stock returns Return on T-bonds

2008	-36.6%	20.1%
2009	25.9%	-11.1%
2010	14.8%	8.5%
2011	2.1%	16.0%
2012	15.9%	3.0%
2013	32.1%	-9.1%
2014	13.5%	10.7%
2015	1.4%	1.3%
2016	11.8%	0.7%
2017	21.6%	2.8%