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Suppose we have the following returns for large-company stocks and Treasury bills over a six year period Year Large CompanyUS Treasury Bill 3.97 14.45 19.09
Suppose we have the following returns for large-company stocks and Treasury bills over a six year period Year Large CompanyUS Treasury Bill 3.97 14.45 19.09 -14.59 -32.08 37.34 4.53 4.90 3.82 6.97 4.96 6.35 4 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 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 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 to 2 decimal places, e.g., 32.16.) Average risk premiunm 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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