Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I have most of the correct answers, just looking for 2 here. Please make sure the answers that you calculate for the answers I already
I have most of the correct answers, just looking for 2 here. Please make sure the answers that you calculate for the answers I already provided are correct. Thank you.
Returns Year Large Company Stocks U.S. Treasury Bills 7.47% 15.59 8.08 26.74 37.41 6.05 24.11 5.97 7.52 5.54 6.75 7.9 for large-company stocks and T-bills over this time period. Do not round intermediate calculations and enter your answers as a percent rounded Calculate the arithmetic average r to 2 decimal places, e.g., 32.16.) Arithmetic average returns Large company stock 3.07 6.84 T-bills Calculate the standard deviation of the returns for large-company stocks and Tbills 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.) Standard deviation Large-company stock 1.11% T-bills Calculate the observed risk premium in each year for the large-company stocks versus the Tbills. a. What was the arithmetic average risk premium over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average risk premium b. 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., 32.16.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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