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I need help with part C please Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-B111 Year
I need help with part C please
Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-B111 Year Return (1) Return (1) 2013 36.00 0.22 2014 15.40 0.22 2015 -5.20 0.22 2016 17.00 0.09 2017 26.00 0.11 Required: 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? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required What was the risk premium on common stock in each year? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year 2013 2014 2015 2016 Risk Premium 35.78% 15.18% (5.42)% 16.91% 25.89% 2017 Required B) Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013 2014 2015 2016 2017 Stock Market Return (3) 36.00 15.40 -5.20 17.00 26.00 T-Bill Return (1) 0.22 0.22 0.22 0.09 0.11 Required: 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? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required What was the average risk premium? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average risk premium 17.67% Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Year 2013 2014 2015 2016 2017 Return (2) 36.00 15.40 -5.20 17.00 26.00 Return (1) 0.22 0.22 0.22 0.09 0.11 Required: 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? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation % Step by Step Solution
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