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Consider the following table for a period of six years: Year Returns Large-Company Stocks U.S. Treasury Bills 1 15.19% 7.39% 2 26.62 8.04 3 37.33
Consider the following table for a period of six years: Year Returns Large-Company Stocks U.S. Treasury Bills 1 15.19% 7.39% 2 26.62 8.04 3 37.33 5.97 4 24.03 5.57 5 7.36 5.50 6 6.67 7.79 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. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. b-1. What
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