Question: Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013 2014 2015 2016 2017 Stock Market T-Bill Return Return

Assume these are the stock market and Treasury bill returns for a 5-year period: Year 2013 2014 2015 2016 2017 Stock Market T-Bill Return Return (%) (%) 33.20 0.11 12.70 0.11 -3.20 0.11 14.40 0.06 23.50 0.08 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.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Year Risk Premium 2013 % 2014 % 2015 % 2016 % 2017 % Required A Required B >
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
