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Consider the following table for a period of six years: Year 1 23456 Returns Large-Company Stocks -15.39% -26.68 37.37 24.07 -7.44 6.71 U.S. Treasury
Consider the following table for a period of six years: Year 1 23456 Returns Large-Company Stocks -15.39% -26.68 37.37 24.07 -7.44 6.71 U.S. Treasury Bills a-1. Arithmetic average return a-2. Standard deviation 7.43% 8.06 6.01 5.77 5.52 7.85 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 % % 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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