Consider the following table for a period of six years:

	Returns
Year	Large-Company Stocks					U.S. Treasury Bills
1			16.09	%		7.57	%
2			26.89			8.13
3			37.51			6.15
4			24.21			6.47
5			7.72			5.59
6			6.85			8.06

1.Calculate the arithmetic average returns for large-company stocks and T-bills over this time period.

2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period.

Calculate the observed risk premium in each year for the large-company stocks versus the T-bills.

3a. What was the arithmetic average risk premium over this period?

3b. What was the standard deviation of the risk premium over this period?