Question
Consider the following rates of return: Year Large-Company Stocks US Treasury Bill 1 3.91 % 5.87 % 2 14.35 2.51 3 19.29 3.74 4 14.39
Consider the following rates of return: |
Year | Large-Company Stocks | US Treasury Bill | ||||
1 | 3.91 | % | 5.87 | % | ||
2 | 14.35 | 2.51 | ||||
3 | 19.29 | 3.74 | ||||
4 | 14.39 | 7.15 | ||||
5 | 31.88 | 5.34 | ||||
6 | 37.00 | 5.39 | ||||
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.)
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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.) | ||
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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