Question: Calculate both the arithmetic and geometric average returns for large-company stocks and T-bills from 1970-1975. Calculate the observed risk premium in each year for the

Calculate both the arithmetic and geometric average returns for large-company stocks and T-bills from 1970-1975. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the average risk premium over this period? Is it possible for the risk premium to be negative before an investment is undertaken? Can the risk premium be negative after the fact? Explain

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