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Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year US Treasury bills 1 Large- Company stocks 3.96%

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Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year US Treasury bills 1 Large- Company stocks 3.96% 14.12 19.01 -14.67 -3216 37.26 4.50% 4.88 3.80 6.96 4.88 6.14 4 5 6 Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for large-company stocks and T-bilis over this period. (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, 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 negative answer should be Indlcated by a minus sign. Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 3216.) b. Calculate the standard deviation of the returns for large company stocks and T-bills over this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,3216.) 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 negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 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 Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Large-company stocks a. T-bills % b. Large-company stocks b. T-bills 960 0-1. Average risk premium G-2. Standard deviation 360

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