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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 large-company stocks and Treasury bills over
a six-year period:
a. Calculate the arithmetic average returns for large-company stocks and T-bills over
this period. (Do not round Intermedlate colculatlons and enter your onswers as a
percent rounded to 2 declmal places, e.g.,32.16.)
b. Calculate the standard deviation of the returns for large-company stocks and T-bills
over this period. (Do not round Intermedlate colculatlons and enter your answers
as a percent rounded to 2 declmal pleces, e.g.,32.16.)
c-1. 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? (A negotlve
answer should be Indleated by a minus slgn. Do not round Intermedlete
calculetlons and enter your answer as a percent rounded to 2 declmal places,
e.g.,32.16.)
c-2. Calculate the observed risk premium in each year for the large-company stocks
versus the T-bils. 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 2 declmal places, e.g.,32.16.)
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