Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return T-Bill Return Year 1 ? 34.73 3.70 Year 2 31.30 .10 Year 3 14.96 .24 Year 4 2.78 .09 Year 5 19.06 .11
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 %