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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 average returns for large-company
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. b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. 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? 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
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