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Conn i Saved Consider the following table for a period of six years: Year 1 2 Returns Large- U.S. Company Stocks Treasury Bills - 16.49%

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Conn i Saved Consider the following table for a period of six years: Year 1 2 Returns Large- U.S. Company Stocks Treasury Bills - 16.49% 7.65% 27.01 8.17 37.59 6.23 24.29 6.87 7.88 5.63 6.93 8.18 ok 4 5 6 nt int a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) T-bilis Large-company stocks % % a-1. Arithmetic average return a-2. Standard deviation % % a-2. Standard deviation % % Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. b-1. What was the arithmetic 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.) b-2. 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.) b-1. Average risk premium b-2. Risk premium standard deviation % %

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