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Consider the following table for a period of six years. Returns U.S Treasury Bills Large-Company Stocks Year Year 1 15.19% 7.39% 8.04 Year 2 -

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Consider the following table for a period of six years. Returns U.S Treasury Bills Large-Company Stocks Year Year 1 15.19% 7.39% 8.04 Year 2 - 26.62 37.33 Year 3 5.97 Year 4 Year 5 24.03 5.57 7.36 5.50 Year 6 6.67 7.79 Requirement 3: Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. (a) What was the arithmetic average risk premium over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk premium % (b) What was the standard deviation of the risk premium over this period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Risk premium standard deviation

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