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.