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The time is 6 years! Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year Large Company 3.99%
The time is 6 years!
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year Large Company 3.99% 14.16 19.25 -14.43 -31.92 37.49 US Treasury Bill 4.59% 4.94 3.86 6.99 5.30 6.20 2 points 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.) 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.) a. b. 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.) 4.76 : % a. Large-company stocks b. Large-company stocks c1. Average risk premium T-bills 15.94 % T-bills c-2. Standard deviationStep by Step Solution
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