Question: please help with requiwment 1&2 T-bills P Do Homework - k... Apps P Do Homework - k... M Gmail YouTube Maps gets sap Problem 10-8

P Do Homework - k... Apps P Do Homework - k... M Gmail YouTube Maps gets sap Problem 10-8 Risk Premiums [LO 2] Consider the following table for a period of six years. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Retums Large-Company U.S Stocks Treasury Bills - 14.99% 7.35% -26.56 8.02 37.29 5.93 23.99 5.37 5.48 6.63 7.73 - 7.28 Requirement 1: Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (6.9. 32.16).) Arithmetic average returns Large-company stock 3.18% T-bills 39.88% Requirement 2: Calculate the standard deviation of the returns for large company stocks and T-bills over this time period. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (0.9.32.16).) Standard deviation Large-company stock 0.2932% T-bilis 1.19% Requirements: Calculate the observed risk premium in each year for the large company stocks versus the Tbilis eco Year 4 Year 5 Year 6 - 23.99 7.28 6.63 0.37 5.48 7.73 Requirement 1: Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Large-company stock T-bills Arithmetic average returns 3.18 % 39.88 % Requirement 2: Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Large-company stock T-bills Standard deviation 0.2932 % 1.19 % Requirement 3: Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. (a) What was the arithmetic 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 percentage rounded to 2 decimal places (e.g., 32.16).) Risk premium -3.47 % (b) What was the standard deviation of the risk premium over this period? (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (0.9., 32.16).) Risk premium standard deviation 24.97 %
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