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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 Treasury Bill 3191 5.82 14.35

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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 Treasury Bill 3191 5.82 14.35 2.51 19.29 3.74 -14.39 7.15 -31.88 5.34 37.00 5.39 1 2 3 A 5 6 a. Calculate the arithmetic average returns for large company stocks and T-bills over this time period. (Do not found intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns Large-company stocks T-bills b. Calculate the standard deviation of the returns for large-company stocks and I bills over this time period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Large-company stocks T-bills c-1 Calculate the observed risk premium in each year for the large-company stocks versus the T bills. What was the arithmetic average Pisk premium over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places, eg 32.16.) Average risk premium % 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. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Standard deviation

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