Question: Check my work Problem 1 1 - 6 Risk Premiums ( LO 1 ) Assume these are the stock market and Treasury bill returns for
Check my work
Problem Risk Premiums LO
Assume these are the stock market and Treasury bill returns for a year period:
tableYearStock Market Return,TBill Return
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.
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 decimal places. Negative values should be entered with a negative sign.
tableYearRisk Premium
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