What was the average risk premium over the period

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Suppose we have the following returns for large-company stocks and Treasury bills over a six year period:

Year Large Company US Treasury Bill
1    3.99 4.59
2   14.16 4.94
3   19.25 3.86
4 -14.43 6.99
5 -31.92 5.30
6   37.49 6.20

Calculate the arithmetic average returns for large-company stocks and T-bills over this period.

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?

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?

Reference no: EM13328054

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