I have attached to two document one is an excel sheet with part of question answered 11.1however I need the formula for the standard deviation sn ther rest of the question answered. In addition I need question 11.2 answered

BUS Chap 11 - homework problems ST 2,3,4,5,6,7 PP 6,14 2. Maturity Premiums. Investments in long-term government bonds produced a negative average return during the period 1977-1981. How should we interpret this? Did bond investors in 1977 expect to earn a negative maturity premium? What do these 5 years' bond returns tell us about the normal future maturity premium? (LO11-1) 3. Risk Premiums. What will happen to the opportunity cost of capital if investors suddenly become especially conservative and less willing to bear investment risk? (LO11-1) 4. Risk Premium. If the stock market return next year turns out to be 20%, will our estimate ofthe \"normal\" risk premium increase or decrease? Does this make sense? (LO11-1) 5. Risk Premiums and Discount Rates. Top hedge fund manager Diana Sauros believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $50. The stock will pay a dividend at year-end of $2. What price should she be willing to pay for the stock today? Assume that risk-free Treasury securities currently offer an interest rate of 2%. Use Table 11.1 to find a reasonable discount rate. (LO11-1) 6. Risk Premiums. Here are stock market and Treasury bill percentage returns between 2008 and 2012: (LO11-1) Year 2008 2009 2010 2011 2012 Stock Market Return 37.23 28.30 17.16 0.98 16.06 T-Bill Return 1.60 0.10 0.12 0.04 0.06 a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? 7. Rate of Return. A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. (LO11-2) a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital gain in this case? d. Why is the dividend yield the same in parts (b) and (d)? Today's Gain/Gain = [(Today'price - Yesterday's price)] divided by (Yesterday's price) or Gain = [(End price - Begin price) divided by End price] x 100 or the the formula, =(G4-G3)/G3*100 for the returns BHP Billiton plc (BBL Date Open High Low Close Volume Adj Close Returns 2/1/2012 68.330002 69.959999 63.290001 64.809998 1172300 54.378601 3/1/2012 65.279999 65.699997 59.150002 61.380001 995900 51.500675 -5.29 5/1/2012 64.379997 66.080002 51.540001 52.5 1241900 44.049942 -14.47 6/1/2012 51.389999 59.389999 51.34 57.189999 1388900 47.985065 8.93 8/1/2012 59.23 62.919998 57.130001 58.77 812400 49.31076 2.76 10/1/2012 63.080002 66.25 61 63.98 683300 54.759998 11.05 11/1/2012 64.449997 65.5 59.240002 63.130001 596100 54.03249 -1.33 4/2/2012 61.5 64.400002 57.84 64.360001 1199500 54.00103 -0.06 7/2/2012 57.560001 59.360001 53.610001 58.259998 902400 48.882847 -9.48 12/3/2012 63.580002 70.559998 62.549999 70.370003 447800 60.229153 23.21 9/4/2012 58.189999 66.650002 56.16 62.459999 970400 53.459042 -11.24 2/1/2013 69.610001 69.940002 62.540001 63.189999 581700 54.083839 1.17 3/1/2013 61.84 63.98 58.040001 58.060001 750600 50.606827 -6.43 4/1/2013 58.200001 60.34 53.48 56.529999 1058200 49.273232 -2.64 5/1/2013 56.09 61.549999 54.75 57.459999 974700 50.083847 1.65 7/1/2013 51.990002 59.240002 49.560001 57.139999 841900 49.804924 -0.56 8/1/2013 58.150002 62.52 57.07 58.080002 698300 50.62426 1.65 10/1/2013 58.200001 63.779999 56.240002 61.639999 658700 54.797813 8.24 11/1/2013 61.740002 64 59.369999 60.68 445100 53.944374 -1.56 1/2/2013 72.290001 72.400002 65.190002 68.639999 643100 58.748455 8.91 12/2/2013 59.950001 60.82 56.860001 60.57 571100 53.846584 -8.34 6/3/2013 58.080002 58.779999 50.82 51.27 950600 44.688457 -17.01 9/3/2013 60.720001 62.93 58.619999 58.860001 457200 52.326401 17.09 1/30/2012 67.360001 68.330002 66.650002 67.330002 1858700 55.566055 6.19 BHP Billiton Limited (BHP) Date Open High Low Close Volume Adj Close Returns 12/2/2013 67.239998 67.830002 63.619999 67.059998 1820300 60.060837 11/1/2013 70.919998 72.959999 67.730003 68.220001 1238100 61.09977 1.73 10/1/2013 66.089996 72.910004 64.669998 70.690002 1371900 63.311974 3.62 9/3/2013 66.040001 70.169998 63.91 66.5 1433300 59.559288 -5.93 8/1/2013 63.599998 68.480003 62.599998 63.279999 1980900 55.655121 -6.56 7/1/2013 58.049999 64.989998 55.66 62.73 2062500 55.171391 -0.87 6/3/2013 65.919998 66.839996 56.580002 57.66 2793200 50.712299 -8.08 5/1/2013 66.550003 70.800003 64.75 65.32 2507500 57.44931 13.28 4/1/2013 68.209999 71.459999 63.189999 67.220001 2958600 59.120373 2.91 3/1/2013 74.029999 75.010002 68.43 68.43 2599700 60.184574 1.8 2/1/2013 79.449997 80.540001 73.900002 74.860001 2149800 64.828377 7.72 1/2/2013 80.209999 80.300003 76 78.720001 1995100 68.17112 5.16 12/3/2012 72.440002 78.580002 71.43 78.419998 2228700 67.911316 -0.38 11/1/2012 70.82 73.32 67.400002 72.040001 2282300 62.386272 -8.14 10/1/2012 69.260002 72.580002 67.300003 70.739998 2437700 61.260475 -1.8 9/4/2012 65.330002 73 63 68.610001 2709300 59.415909 -3.01 8/1/2012 67.059998 70.599998 64.800003 65.800003 2004400 55.98262 -5.78 7/2/2012 65.620003 67.300003 60.73 66.339996 3326600 56.442047 0.82 6/1/2012 60.450001 67.57 59.869999 65.300003 3563800 55.55722 -1.57 5/1/2012 74.57 76.099998 60.349998 61.529999 3817000 52.349705 -5.77 4/2/2012 72.629997 74.589996 68.540001 74.300003 3208700 63.21442 20.75 3/1/2012 77.25 77.790001 69.959999 72.400002 3163200 61.597897 -2.56 2/1/2012 80.300003 82.230003 75.199997 76.82 3104200 65.358429 6.1 1/30/2012 79.190002 80.459999 78.309998 79.440002 4560900 66.644165 1.97 Valeant Pharmaceuticals International, Inc. (VRX Date 12/2/2013 11/1/2013 10/1/2013 9/3/2013 8/1/2013 7/1/2013 6/3/2013 5/1/2013 4/1/2013 3/1/2013 2/1/2013 1/2/2013 12/3/2012 11/1/2012 10/1/2012 9/4/2012 8/1/2012 7/2/2012 6/1/2012 5/1/2012 4/2/2012 3/1/2012 2/1/2012 1/17/2012 Open High Low Close Volume Adj Close Returns 108.610001 113.349998 105.169998 113.019997 1026500 113.019997 106 112.470001 102.93 109.629997 993200 109.629997 -3 104.040001 115.400002 102.599998 105.720001 1551700 105.720001 -3.57 100.260002 106.980003 98.360001 104.330002 1017500 104.330002 -1.31 94.449997 105.400002 93.660004 98.339996 1375500 98.339996 -5.74 86.889999 94.220001 86.889999 93.599998 1308000 93.599998 -4.82 91.690002 91.739998 81.940002 86.080002 2145600 86.080002 -8.03 75.339996 96.25 71.989998 91.120003 2341600 91.120003 5.86 75.239998 76.57 69.870003 76.080002 1641000 76.080002 -16.51 67.349998 75.099998 66.089996 75.019997 1464200 75.019997 -1.39 66.470001 67.980003 64.050003 67.459999 1076600 67.459999 -10.08 61.130001 67.129997 59.34 66.32 1565000 66.32 -1.69 55.43 61.099998 55.150002 59.77 1690400 59.77 -9.88 55.810001 58.150002 52.5 55.279999 1648300 55.279999 -7.51 56.209999 59 54.290001 55.93 965100 55.93 1.18 57.639999 61.110001 54.400002 55.27 2179400 55.27 -1.18 47.57 52.950001 45.810001 51.27 1710900 51.27 -7.24 45.080002 49.299999 44.009998 47.560001 1601500 47.560001 -7.24 47.389999 49.200001 42.470001 44.790001 2197200 44.790001 -5.82 55.66 59.939999 45.889999 48.66 2741200 48.66 8.64 53.599998 56.599998 52.419998 55.630001 1053200 55.630001 14.32 53.110001 55.799999 52.380001 53.689999 1313200 53.689999 -3.49 48.73 53.380001 45.52 52.91 2069500 52.91 -1.45 50.310001 51.580002 47.970001 48.490002 2298900 48.490002 -8.35 Kforce Inc. (KFRC) Date 12/2/2013 11/1/2013 10/1/2013 9/3/2013 8/1/2013 7/1/2013 6/3/2013 5/1/2013 4/1/2013 3/1/2013 2/1/2013 1/2/2013 12/3/2012 11/1/2012 10/1/2012 9/4/2012 8/1/2012 7/2/2012 6/1/2012 5/1/2012 4/2/2012 3/1/2012 2/1/2012 1/17/2012 BRIC Index MSCI Ishares (BKF) Date 12/2/2013 11/1/2013 10/1/2013 9/3/2013 8/1/2013 7/1/2013 6/3/2013 5/1/2013 4/1/2013 3/1/2013 2/1/2013 1/2/2013 12/3/2012 11/1/2012 10/1/2012 9/4/2012 8/1/2012 7/2/2012 6/1/2012 5/1/2012 4/2/2012 3/1/2012 2/1/2012 1/17/2012 Open High Low Close Volume Adj Close Returns 38.490002 38.630001 36.68 37.400002 117700 35.290833 38.709999 39.59 36.5 38.630001 74400 36.22739 2.65 37.34 39.669998 37.34 38.57 76600 36.17112 -0.16 34.630001 39.040001 34.330002 37.240002 102300 34.923843 -3.45 35.029999 36 33.540001 34.169998 107200 32.044777 -8.24 34.16 35.869999 32.799999 34.610001 112900 32.457417 1.29 37.720001 38.049999 32.619999 34.049999 187800 31.932243 -1.62 39.360001 40.5 37.459999 37.52 139200 34.487442 8 38.869999 39.540001 36.869999 39.5 449500 36.307407 5.28 39.560001 41.060001 38.279999 38.849998 120100 35.709942 -1.65 42.09 42.290001 39.209999 39.880001 102000 36.656693 2.65 41.48 42.259998 41.009998 41.939999 131700 38.550194 5.17 38.5 40.93 38.099998 40.84 157800 37.539101 -2.62 38.720001 39.5 36.669998 38.27 89100 35.013859 -6.73 38.09 39.389999 37.650002 38.150002 99700 34.904072 -0.31 35.459999 39.259998 35 37.740002 129100 34.528954 -1.07 36.02 37.5 35.16 35.66 90300 32.625927 -5.51 35.779999 36.779999 34.049999 35.75 93800 32.708271 0.25 34.23 36.93 33.619999 35.869999 118700 32.818058 0.34 40.110001 40.599998 33.849998 34.970001 129500 31.41889 -4.26 40.900002 41.849998 39.360001 40.09 115100 36.018967 14.64 43.939999 44.349998 40 40.880001 286100 36.728745 1.97 41.700001 44.48 41.689999 43.799999 385100 39.352226 7.14 39.240002 41.939999 39.18 41.16 136000 36.980312 -6.03 (G4-G3)/G3*100 Open High Low Close Volume Adj Close Returns 20.200001 21.370001 18.41 20.98 130000 20.076515 19.65 20.530001 19.209999 20.18 133300 19.207144 -4.33 17.639999 20 16.83 19.690001 147200 18.740767 -2.43 16.5 17.99 16.24 17.690001 97000 16.837185 -10.16 16.75 17.23 16.190001 16.27 131400 15.485641 -8.03 14.69 16.879999 14.69 16.68 108000 15.875875 2.52 14.92 15.52 14.04 14.6 152200 13.89615 -12.47 14 15.11 12.23 14.89 264900 14.172169 1.99 16.309999 16.43 14.28 15.12 115600 14.391081 1.54 14.41 16.65 14.37 16.370001 182000 15.58082 8.27 13.85 16.469999 13.43 14.54 211400 13.839042 -11.18 14.68 14.85 13.36 13.76 183300 13.096645 -5.36 13.02 14.92 12.2 14.34 275000 13.648684 4.22 11.19 13.02 11.15 12.86 161500 11.336042 -16.94 11.87 12.11 10.66 11.15 133400 9.828684 -13.3 11.7 12.82 11.16 11.79 155800 10.392841 5.74 11.59 12.99 10.34 11.72 176800 10.331137 -0.59 13.52 14.43 11.57 11.57 160600 10.198912 -1.28 12.94 13.55 12.14 13.46 127300 11.864941 16.34 14.46 14.82 12.65 13.33 194400 11.750346 -0.97 14.87 15.4 13.9 14.47 104200 12.755252 8.55 14.22 15.02 13.7 14.9 164800 13.134295 2.97 12.55 14.56 12.21 14.08 220300 12.411468 -5.5 12.88 13.1 12.28 12.43 115100 10.957 -11.72