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Suppose we have the following returns for large-company stocks and Treasury bills over a six year period Large Company 3.92 14.18 19.37 14.31 -31.80 37.08

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Suppose we have the following returns for large-company stocks and Treasury bills over a six year period Large Company 3.92 14.18 19.37 14.31 -31.80 37.08 US Treasury Bill 5.90 2.53 3.76 7.16 5.42 6.24 Year 2 3 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round 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 T-bills over this 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 average risk premium over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to2 decimal places, e.g., 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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