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Qu velue 10.00 points Suppose we have the following returms for large-company stocks and Treasury bills over a six year period 3.67 14.32 19.11 -14.57

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Qu velue 10.00 points Suppose we have the following returms for large-company stocks and Treasury bills over a six year period 3.67 14.32 19.11 -14.57 -32.06 37.35 4 69 3.55 4.14 5.89 5.16 5.33 a. Calculate the arithmetic average returns for large-company stocks and T.bills over this period (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places e.g., 32.16 Average returns Large company stocks T-bills b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Large company stocks T-bills c1 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? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average risk premium c-2 Calculate the observed risk premium in each year for the large-company stocks versus the T-bills What was the standard deviation of the risk premium over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, eg. 3216) Standard deviation Hints References eBook & Resources Hint 1

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