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Consider the following rates of return: Large. Year Company US Treasury Bill Stocks 1 3.99% 6.65% 2 14.50 4.46 3 19.39 4.33 4 -14.29 7.34

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Consider the following rates of return: Large. Year Company US Treasury Bill Stocks 1 3.99% 6.65% 2 14.50 4.46 3 19.39 4.33 4 -14.29 7.34 5 -31.78 5.44 6 3710 6.45 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.) Large company stocks T-bills 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.) % Large company stocks T-bills c-1 Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. 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.) c-2Calculate 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.) c.1. Average nisk premium c2 Standard deviation

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