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Year Large Company US Treasury Bill 1    3.92 5.90 2   14.18 2.53 3   19.37 3.76 4...

Year Large Company US Treasury Bill
1    3.92 5.90
2   14.18 2.53
3   19.37 3.76
4 –14.31 7.16
5 –31.80 5.42
6   37.08 6.24
a.

Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Average returns
  Large company stocks %
  T-bills %
b.

Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation
  Large company stocks %
  T-bills %
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? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Average risk premium %
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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Standard deviation %

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