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Consider the following table for a period of six years: Returns U.S. Treasury Year Large-Company Stocks Bills 12345 -16.59% 7.67% -27.04 8.18 37.61 6.25

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Consider the following table for a period of six years: Returns U.S. Treasury Year Large-Company Stocks Bills 12345 -16.59% 7.67% -27.04 8.18 37.61 6.25 24.31 6.97 -7.92 6.95 5.64 8.21 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. Note: 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. Note: 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 ces a-1. Arithmetic average return 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? Note: 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? Note: 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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