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I am having a problem calculating b & C. Please help. Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year
I am having a problem calculating b & C. Please help. Here are stock market and Treasury bill percentage returns between 2006 and 2010: |
Year | Stock Market Return | T-Bill Return |
2006 | 16.57 | 5.60 |
2007 | 6.51 | 5.36 |
2008 | 38.03 | 1.90 |
2009 | 29.00 | 0.50 |
2010 | 18.26 | 0.72 |
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 decimalplaces.) |
Year | Risk Premium |
2006 | 10.97 % |
2007 | 1.15 % |
2008 | -39.93 % |
2009 | 28.50 % |
2010 | 17.54 % |
b. | What was theaveragerisk premium?(Do not roundintermediate calculations. Round youranswerto 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 | % |
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