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Suppose we have the following returns for large - company stocks and Treasury bills over a six - year period: table [ [ Year
Suppose we have the following returns for largecompany stocks and Treasury bills over a sixyear period:
tableYearLargeCompany,US Treasury Bill
a Calculate the arithmetic average returns for largecompany stocks and Tbills over this time period.
Note: 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.
Note: Do not round intermediate calculations and 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?
Note: 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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
tablea Largecompany stocks average return,
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