Question: Expert Q&A Done Problem 12-8 Risk Premiums [LO2, 3] Suppose we have the following returns for large-company stocks and Treasury bills over a six year

 Expert Q&A Done Problem 12-8 Risk Premiums [LO2, 3] Suppose we

Expert Q&A Done Problem 12-8 Risk Premiums [LO2, 3] Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: 3.9o 19.21 -14.47 -31.96 37.45 5.84 2.49 3.72 7.14 5.26 6.39 a. Calculate the anthmetic average retuns for large-company stocks and T-bils over this period. (Do no round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places e.g 32.16.) Large company stocks T-bills b. Calculate the standard deviation of the retums for large-company stocks and T-bills over this period (Do not round intermediate caleulations. Enter your answers as a percent rounded to 2 decimal places, e.g 32.16.) Standard deviation Large company stocks T-bills c-1 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,.g. 32.16.) Average risk premium c-2 Calculate the observed risk premium in each year for the large-company stocks versus the T-bils. 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 decimall places, eg 32.16) Standard deviation

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