Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return...
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Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market. Return (%) (%) 2016 33.10 0.10 2017 12.60 0.10 2018 -3.10 0.10 2019 14.10 0.05 2020 23.20 0.07 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? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign. Year Risk Premium 2016 % 2017 % 2018 % 2019 % Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market. Return (%) (%) 2016 33.10 0.10 2017 12.60 0.10 2018 -3.10 0.10 2019 14.10 0.05 2020 23.20 0.07 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? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign. Year Risk Premium 2016 % 2017 % 2018 % 2019 %
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