Question
Check my work Check My Work button is now enabledItem 3 Item 3 0.5 points Time Remaining 2 hours 46 minutes 32 seconds 02:46:32 Suppose
Check my work Check My Work button is now enabledItem 3 Item 3 0.5 points Time Remaining 2 hours 46 minutes 32 seconds 02:46:32 Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year Large Company US Treasury Bill 1 3.98% 4.56% 2 14.33 4.92 3 19.17 3.84 4 14.51 6.98 5 32.00 5.22 6 37.41 5.36 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the average risk premium over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the standard deviation of the risk premium over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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