Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock...
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Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (8) 2016 2017 2018 2019 2020 34.30 14.00 -3.90 15.10 24.50 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Required A Complete this question by entering your answers in the tabs below. Year 2016 2017 2018 2019 2020 T-Bill Return (8) 0.15 0.15 0.15 0.10 0.12 Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign. Risk Premium % % % % % Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (8) 2016 2017 2018 2019 2020 34.30 14.00 -3.90 15.10 24.50 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Required A Complete this question by entering your answers in the tabs below. Year 2016 2017 2018 2019 2020 T-Bill Return (8) 0.15 0.15 0.15 0.10 0.12 Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign. Risk Premium % % % % %
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Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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