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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, 1900-2015
Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015 Average Premium (Extra return versus Treasury bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Average Annual Rate of Return (%) 3.8 5.3 11.4 1.5 7.6 Standard deviation of returns, 1900-2015 Standard Deviation (%) Portfolio Treasury bills Long-term government bonds Common stocks 2.9 9.0 19.9 a. what was the average rate of return on large U.S. common stocks from 1900 to 2015? (Enter your answer as a percent rounded to 1 decimal place.) Average rate of return b. What was the average risk premium on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) Average risk remium c. What was the standard deviation of returns on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) Standard deviation of returns
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