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Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: (please show work) Suppose we have the following returns
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: (please show work)
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period Year Large Company 3.90% 14.47 19.21 14.47 31.96 37.45 US Treasury Bill 5.84% 2.49 3.72 7.14 5.26 6.39 2 4 5 6 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.) a. 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.)Step by Step Solution
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