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ent 3 chapters 7-12 Year 1973 1974 1975 1976 1977 1978 STOCKS - 14.69% -26.47 3723 23.93 - 716 6.57 729% 799 5.87 5.07 5.45

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ent 3 chapters 7-12 Year 1973 1974 1975 1976 1977 1978 STOCKS - 14.69% -26.47 3723 23.93 - 716 6.57 729% 799 5.87 5.07 5.45 764 a. 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.) b. 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.) c. 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? (A negative answer should be indicated by a minus sign. Do not found intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) d. 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.. 3216.) a. Large company stock T-bills b. Large company stock T-bills c. Risk premium d. Standard deviation

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