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Consider the following table for a period of six years: US Year -N Returns Large- Company Stocks Treasury Bills -16.49% 7.65% - 2701 8.17 3759

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Consider the following table for a period of six years: US Year -N Returns Large- Company Stocks Treasury Bills -16.49% 7.65% - 2701 8.17 3759 6.23 24.29 6.87 - 7.88 5.63 6.93 8.18 3 4. 5 6 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) 3-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) T-bills Large-company stocks 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? (A negative answer should be indicated by a minus sign. Do not round intermediate Prov 1 of 14 Next > est this time period. (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. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) T-bills Large-company stocks % % 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? (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? (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 % 95 Proy 1 of 14 !!! Next > 0 1

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