Here are rates of return on a broad stock market index and on Treasury bills between 2013

Question:

Here are rates of return on a broad stock market index and on Treasury bills between 2013 and 2017:

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?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

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