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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 stocks
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. (Do not round Intermedlate colculatlons and enter your answers as a percent rounded to 2 declmal pleces, 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 Intermedlate colculatlons and enter your answers as a percent rounded to 2 declmal ploces, 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 negotlve answer should be Indleated by a minus sign. Do not round Intermedlete calculations and enter your answer as a percent rounded to 2 declmal 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 Intermedlate calculations and enter your answer as a percent rounded to 2 declmal ploces, e.g., 32.16.)
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