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Consider the following table for a period of six years Returns Year 2 4 U.S. Treasury Bills -14.89% -26.53 37.27 23.97 7.24 6.61 8.01 5.91

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Consider the following table for a period of six years Returns Year 2 4 U.S. Treasury Bills -14.89% -26.53 37.27 23.97 7.24 6.61 8.01 5.91 5.27 5.47 7.70 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 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

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