Question: I am having a problem calculating b & C. Please help. Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year

I am having a problem calculating b & C. Please help.

Here are stock market and Treasury bill percentage returns between 2006 and 2010:

Year Stock Market Return T-Bill Return
2006 16.57 5.60
2007 6.51 5.36
2008 38.03 1.90
2009 29.00 0.50
2010 18.26 0.72

a.

What was the risk premium on common stock in each year?(Negative values should be indicated by a minus sign. Round your answers to 2 decimalplaces.)

Year Risk Premium
2006 10.97 %
2007 1.15 %
2008 -39.93 %
2009 28.50 %
2010 17.54 %

b.

What was theaveragerisk premium?(Do not roundintermediate calculations. Round youranswerto 2 decimal places.)

Average risk premium %

c.

What was the standard deviation of the risk premium?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation of the risk premium %

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