Question: 1 . Calculate Arithmetic average returns for S&P and T bills over the peroid 1 9 7 0 - 1 9 7 5 ii )

1. Calculate Arithmetic average returns for S&P and T bills over the peroid 1970-1975
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 T-bills 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
 1. Calculate Arithmetic average returns for S&P and T bills over

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!