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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 1 3.96 4.50
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period:
Year | Large Company | US Treasury Bill | ||||
1 | 3.96 | 4.50 | ||||
2 | 14.12 | 4.88 | ||||
3 | 19.01 | 3.80 | ||||
4 | 14.67 | 6.96 | ||||
5 | 32.16 | 4.88 | ||||
6 | 37.26 | 6.14 | ||||
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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