Calculate the standard deviation of the returns

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Reference no: EM131968836

large company stocks
year 1: -15.49 percent
year 2: -26.71 percent
year 3: 37.39 percent
year 4: 24.09 percent
year 5: -7.48 percent
year 6: 6.73 percent

us Treasury bills
year 1: 7.45 percent
year 2: 8.07 percent
year 3: 6.03 percent
year 4: 5.87 percent
year 5: 5.53 percent
year 6: 7.88 percent

Calculate the standard deviation of the returns for large company stocks and t-bills over this time period.
large company stocks _____ percent
t-bills _______ percent

Calculate the observed risk premium in each year for the large company stocks versus the t-bills.

What was the arithmetic average risk premium over this period?

risk premium _______ percent

What was the standard deviation of the risk premium over this period?

risk period standard deviation _____ percent.

Reference no: EM131968836

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