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Given the following historical returns: Year 1 2 3 4 Stock XX T-bill 15% 5% 22% 5% 1% 4% -5% 2% 1) Calculate the


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Given the following historical returns: Year 1 2 3 4 Stock XX T-bill 15% 5% 22% 5% 1% 4% -5% 2% 1) Calculate the mean return and standard deviation of the returns for stock XX and T-bill. (3 points) 2) Calculate the average risk premium and the standard deviation of the risk premium over this period. Assume that T-bill is a good proxy for the risk-free asset. (3 points) 3) Calculate the correlation between Stock XX and T-bill. (4 points)

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