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Consider the following rates of return; Large-Company U.S. Treasury Bills Year Stocks 1 -14.69% 6.93% 2 -26.47 8.00 3 37.23 5.80 4 23.93 5.08 5

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Consider the following rates of return; Large-Company U.S. Treasury Bills Year Stocks 1 -14.69% 6.93% 2 -26.47 8.00 3 37.23 5.80 4 23.93 5.08 5 -7.16 5.12 6 6.57 718 0UWN 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 % 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- Calculate the observed risk premium in each year for the large-company stocks versus the 2. 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 risk premium C-2. Standard deviation % %

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