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The stock market return and the T-bill return over a five-year period are given below: Year 2013 2014 2015 2016 2017 Stock Market Return (%)
The stock market return and the T-bill return over a five-year period are given below: Year 2013 2014 2015 2016 2017 Stock Market Return (%) 35.40 14.80 -4.70 16.20 25.40 T-Bill Return (%) 0.19 0.19 0.19 0.06 0.08 a. Calculate the risk premium on common stock in each year. b. Calculate the average risk premium. c. Calculate the standard deviation of the risk premium. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the risk premium on common stock in each year. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year 2013 2014 Risk Premium % % % % 2015 2016 2017 % The stock market return and the T-bill return over a five-year period are given below: Year 2013 2014 2015 2016 Stock Market Return (%) 35.40 14.80 -4.70 16.20 25.40 T-Bill Return (%) 0.19 0.19 0.19 0.06 0.08 2017 a. Calculate the risk premium on common stock in each year. b. Calculate the average risk premium. c. Calculate the standard deviation of the risk premium. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the average risk premium. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average risk premium % The stock market return and the T-bill return over a five-year period are given below: Year 2013 2014 2015 2016 2017 Stock Market Return (%) 35.40 14.80 -4.70 16.20 25.40 T-Bill Return (%) 0.19 0.19 0.19 0.06 0.08 a. Calculate the risk premium on common stock in each year. b. Calculate the average risk premium. c. Calculate the standard deviation of the risk premium. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the standard deviation of the risk premium. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation %
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