Problem 10-8 Risk Premiums [LO 2] Consider the following table for a period of six years. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Returns Large-Company U.S. Stocks Treasury Bills - 15.29% 7.41% - 26.65 8.05 37.35 5.99 24.05 5.67 - 7.40 5.51 6.69 7.82 Requirement 1: Calculate the anthmetic average returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Large-company stock T-bills Arithmetic average returns 3.13 % 6.74 % Requirement 2: Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period, (Do not round intermediate calculations. Enter your answers as a percentage rounded to 21 decimal places (e.g., 32.16).) Large-company stock T-bills Standard deviation 22.2 % 1.04 % Large-company stock T-bills 3.13 % 6.74 % Requirement 2: Calculate the standard deviation of the returns for large-company stocks and T-bills over this time peri (Do not round intermediate calculations. Enter your answers as a percentage rounded to decimal places (e.g., 32.16).), Large-company stock T-bills Standard deviation 22.2r % 1.04 % Requirement 3: Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. (a) What was the arithmetic average risk premium over this period? (Negative amount should be Indicated by a minus sign. Do not round intermediate calculations. Enter your answer as percentage rounded to 2 decimal places (e.g., 32.16).) Risk premium -3.62 % (b) What was the standard deviation of the risk premium over this period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g. 32.16).) Risk premium standard deviation 22.84 %