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Year Large Company 3.88% 14.31 19.05 14.63 -32.12 37.29 US Treasury Bill 5.78% 2.45 3.68 712 4.92 4.89 2 4 5 6 Calculate the arithmetic

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Year Large Company 3.88% 14.31 19.05 14.63 -32.12 37.29 US Treasury Bill 5.78% 2.45 3.68 712 4.92 4.89 2 4 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.) a. Large-company stocks T-bills b. L arge-company stocks T-bills c-1. Average risk premium c-2. Standard deviation

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