q $6$ Problem $12-8$ Risk Premiums $[$LO$2,3]$ Suppose we have the following returns for large$-$company stocks and Treasury bills over a six$-$year period: YearLarge$-$Company stocksU.S$.$ Treasury bills$13\mathrm{.}91\%5\mathrm{.}87\%214\mathrm{.}352\mathrm{.}51319\mathrm{.}293\mathrm{.}74414\mathrm{.}397\mathrm{.}15531\mathrm{.}885\mathrm{.}34637\mathrm{.}005\mathrm{.}39$ a$.$ Calculate the arithmetic average returns for large$-$company stocks and T$-$bills over this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ b$.$ Calculate the standard deviation of the returns for large$-$company stocks and T$-$bills over this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ 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? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ c$-2.$ Calculate the observed risk premium in each year for the large$-$company stocks versus the T$-$bills. What was the standard deviation of the risk premium over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ Problem $12-8$ Risk Premiums $[$LO$2,3]$ Suppose we have the following returns for large$-$company stocks and Treasury bills over a six$-$year period: a$.$ Calculate the arithmetic average returns for large$-$company stocks and T$-$bills over this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ b$.$ Calculate the standard deviation of the returns for large$-$company stocks and T$-$bills over this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ 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? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ c$-2.$ Calculate the observed risk premium in each year for the large$-$company stocks versus the T$-$bills. What was the standard deviation of the risk premium over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$