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Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900
Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900 Average Annual Rate of Return (%) 3.8 5.3 11.5 Average Premium (Extra return versus Treasury bills) (%) Portfolio Treasury bills Treasury bonds Common stocks 1.5 7.7 Standard deviation of returns, 1900-2017. Portfolio Treasury bills Long-term government bonds Common stocks Standard Deviation (%) 2.9 9.0 19.7 a. What was the average rate of return on large U.S. common stocks from 1900 to 2017? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) Answer is complete but not entirely correct. a. b. Average rate of return Average risk premium Standard deviation of returns 11.4 % 7.6 X 19.9 % % %
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