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Consider the following table for a period of six years. Returns Year 1 9 7 3 1 9 7 4 1 9 7 5 1
Consider the following table for a period of six years.
Returns
Year
LargeCompany Stocks
US Treasury Bills
Calculate the arithmetic average returns for largecompany stocks and Tbills over this time period.Note: Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
Calculate the standard deviation of the returns for largecompany stocks and Tbills over this time period.Note: Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
Calculate the observed risk premium in each year for the largecompany stocks versus the Tbills. 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 decimal places, eg
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 decimal places, eg
@ Answer is complete but not entirely correct.
Large company stockTbills
Large company stockTbills
Risk premium
Standard deviation
V
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