Question: a) Find the arithmetic average return on both types of investment b) Find the average risk premium QUESTION 4 (1 point): a) Find the arithmetic

a) Find the arithmetic average return on both types of investment

b) Find the average risk premium OUESTION 4 (1 noint):

QUESTION 4 (1 point): a) Find the arithmetic average return on both types of investment b) Find the average risk premium Year 1970 1971 1972 1973 1974 1975 Large Stocks -3.57% 8.01% 27.37% 0.27% -25.93% 18.48% Average return large stocks Average return T-bills Average observed risk premium T-bills 6.89% 3.86% 3.43% 4.78% 7.68% 7.05%

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