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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
1973
1974
1975
1976
1977
1978
Large-Company Stocks
14.69%
26.47
37.23
23.93
-7.166.57
U.S. Treasury Bills
6.93%
8.00
5.80
5.08
5.12
7.18
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.
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.
Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. 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.
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.
@ Answer is complete but not entirely correct.
Large company stockT-bills
Large company stockT-bills
Risk premium
Standard deviation
3.24 V
%
6.35%
24.11%
1.190
%
13.19%
24.92%

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