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Year 1 2. 3 4 5 6 Large Company US Treasury Bill 3.90% 5.84% 14.47 2.49 19.21 3.72 -14.47 7.14 -31.96 5.26 37.45 6.39 a.

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Year 1 2. 3 4 5 6 Large Company US Treasury Bill 3.90% 5.84% 14.47 2.49 19.21 3.72 -14.47 7.14 -31.96 5.26 37.45 6.39 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 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.) a. Large-company stocks T-bills b. Large-company stocks T-bills C-1. Average risk premium C-2. Standard deviation % % % % % %

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