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Suppose we have the following returns for large - company stocks and Treasury bills over a six - year period: Year Large - Company US
Suppose we have the following returns for largecompany stocks and Treasury bills over a sixyear period:
Year LargeCompany US Treasury Bill
a Calculate the arithmetic average returns for largecompany stocks and Tbills over
this time period. Do not round intermediate calculations and enter your answers
as a percent rounded to decimal places, eg
b Calculate the standard deviation of the returns for largecompany stocks and Tbills
over this time period. Do not round intermediate calculations. Enter your answers
as a percent rounded to decimal places, eg
c Calculate the observed risk premium in each year for the largecompany stocks
versus the Tbills. 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 decimal places,
eg
c Calculate the observed risk premium in each year for the largecompany stocks
versus the Tbills. 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 decimal places, eg
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