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Suppose we have the following returns for large - company stocks and Treasury bills over a six - year period: a . Calculate the arithmetic
Suppose we have the following returns for largecompany stocks and Treasury bills over
a sixyear period:
a Calculate the arithmetic average returns for largecompany stocks and Tbills over
this period. Do not round Intermedlate colculatlons and enter your onswers as a
percent rounded to declmal places, eg
b Calculate the standard deviation of the returns for largecompany stocks and Tbills
over this period. Do not round Intermedlate colculatlons and enter your answers
as a percent rounded to declmal pleces, eg
c Calculate the observed risk premium in each year for the largecompany stocks
versus the Tbills. What was the average risk premium over this period? A negotlve
answer should be Indleated by a minus slgn Do not round Intermedlete
calculetlons and enter your answer as a percent rounded to declmal places,
eg
c Calculate the observed risk premium in each year for the largecompany stocks
versus the Tbils. What was the standard deviation of the risk premium over this
period? Do not round Intermedlate calculatlons and enter your onswer as a
percent rounded to declmal places, eg
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