Question: 1 . Calculate Arithmetic average returns for S&P and T bills over the peroid 1 9 7 0 - 1 9 7 5 ii )
Calculate Arithmetic average returns for S&P and T bills over the peroid
ii Calculate standard deviation of the returns for S&P and T bills
iii Calculate the observed risk premium in each year for Canadian S&P stock versus Tbills what was the average risk premium over this period what was the standard deviation of the risk premium over this period
iv Is it possible for the risk premium to be negative before an investment is undertaken can the premium be negative after the fact? Explain
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