Question: Please solve the three parts and for part A write each year's risk premium %. Assume these are the stock market and Treasury bill returns
Please solve the three parts and for part A write each year's risk premium %.
Assume these are the stock market and Treasury bill returns for a 5-year period: Required: a. What was the risk premium on common stock in each year? (Negative values should be entered with a negative sign.) 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.)
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