Question: Problem 10-8 Risk Premiums [LO 2] Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury Bills 1 14.79

Problem 10-8 Risk Premiums [LO 2]

Consider the following table for a period of six years:
Returns
Year Large-Company Stocks U.S. Treasury Bills
1 14.79 % 7.31 %
2 26.50 8.00
3 37.25 5.89
4 23.95 5.17
5 7.20 5.46
6 6.59 7.67
a-1.

Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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