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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 stocks US Treasury bills 1 3.66%
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year Large- Company stocks US Treasury bills 1 3.66% 4.66% 2 14.44 2.33 3 19.03 4.12 4 -14.65 5.88 5 -32.14 4.90 6 37.27 6.33 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 Tbills 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
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