Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year 2006 2007 2008 2009 2010 Stock Market Return 20.07 10.11 -40.83
Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year 2006 2007 2008 2009 2010 Stock Market Return 20.07 10.11 -40.83 32.30 21.86 T-Bill Return 8.30 7.86 3.00 1.40 1.52 a. What was the risk premium on common stock in each year? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) Year 2006 2007 2008 2009 2010 Risk Premium % % % % % b. What was the average risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average risk % premium c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation of the risk premium %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started