Consider the following table for a period of six years.

Returns

Year

Large-Company Stocks

U.S. Treasury Bills

Year 1

15.59

%

7.47

%

Year 2

26.74

8.08

Year 3

37.41

6.05

Year 4

24.11

5.97

Year 5

7.52

5.54

Year 6

6.75

7.91

Requirement 2:

Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

	Standard deviation
Large-company stock	%
T-bills	%

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

%