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Consider the following table for a period of six years Returns Year Large-Company Stocks U.S. Treasury Bills 15.49% 2 3 4 5 6 26.71 37.39

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Consider the following table for a period of six years Returns Year Large-Company Stocks U.S. Treasury Bills 15.49% 2 3 4 5 6 26.71 37.39 24.09 7.48 6.73 8.07 6.03 5.87 5.53 7.88 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.) Arithmetic average returns Large-company stock T-bills 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.) Standard deviation Large-company stock T-bills 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? (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.) Average risk premium b. 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.) Risk premium standard deviation 0

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