Problem 3: Risk Premiums Large-company stocks and Treasury Bills produced the following historial returns: a) Calculate the arithmetic average returns for large-company stocks and T-Bills over this time period. b) Calculate the standard deviation of the returns for large-company stocks and T-Bills over this period. c) Calculate the observed risk premium in each year for the large-company stocks versus the T-Bills. What was the average risk premium over this period? What was the standard deviation for the risk premium over this period? d) Is it possible for the risk premium to be negative before an investment is undertaken? Can the risk premium be negative after the fact? Explain. Use the Template Provided Below to Create Your Solution - Pay close attention to the formulas and formattin Input area: \begin{tabular}{l|l|r|} \multicolumn{1}{|c|}{ Large } \\ Year & Stocks & T-bills \\ \hline 1970 & & \\ 1971 & & \\ 1972 & & \\ 1973 & \\ 1974 \\ 1975 \end{tabular} T-bill returns Average observed risk premium Average return