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Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: YearLarge CompanyUS Treasury Bill 4.00% 14.49 19.33 -14.35 -31.84

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Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: YearLarge CompanyUS Treasury Bill 4.00% 14.49 19.33 -14.35 -31.84 37.04 4.62% 4.96 3 4 3.88 7.00 5.38 6.43 5 6 a. 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., 32.16.) 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, 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 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 intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Large-company stocks T-bills b. Large-company stocks T-bills c-1. Average risk premium c-2. Standard deviation

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