In: Finance
Assume these are the stock market and Treasury bill returns for a 5-year period: |
Year | Stock Market Return | T-Bill Return | ||||||
Year 1 | − | 35.73 | 3.10 | |||||
Year 2 | 30.10 | 1.50 | ||||||
Year 3 | 15.56 | .21 | ||||||
Year 4 | 2.38 | .06 | ||||||
Year 5 | 18.26 | .08 | ||||||
a. |
What was the risk premium on common stock in each year? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) |
Year | Risk premium |
Year 1 | % |
Year 2 | % |
Year 3 | % |
Year 4 | % |
Year 5 | % |
b. |
What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
Average risk premium | % |
c. |
What was the standard deviation of the risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
Standard deviation | % |
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
As nothing was mentioned excel is used.