TABLE 12.1 Year-to-Year Total Returns: 19262019

Year	Large-Company Stocks	Long-Term Government Bonds	U.S. Treasury Bills	Consumer Price Index
1970	3.86	12.11	6.52	5.49
1971	14.30	13.23	4.39	3.36
1972	19.00	5.69	3.84	3.41
1973	14.69	1.11	6.93	8.80
1974	26.47	4.35	8.00	12.20
1975	37.23	9.20	5.80	7.01

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 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.)