Question: Calculating Arithmetic and geomateric averages, Average returns, standard deviation, average risk premium. Suppose we have the following returns for large-company stocks and Treasury bills over

Calculating Arithmetic and geomateric averages, Average returns, standard deviation, average risk premium.

Calculating Arithmetic and geomateric averages, Average returns, standard deviation, average risk premium.

Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Large company stocks % T-bills % 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? (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average risk premium % Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the standard deviation of the risk premium over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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