Use the data in the tables below to answer the following questions:

Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015.

Portfolio Average Annual

Rate of Return (%) Average Premium (Extra return

versus Treasury bills) (%)

Treasury bills 3.8

Treasury bonds 5.3 1.5

Common stocks 11.4 7.6

Standard deviation of returns, 1900-2015.

Portfolio Standard Deviation (%)

Treasury bills 2.9

Long-term government bonds 9.0

Common stocks 19.9

a) What was the average rate of return on large U.S. common stocks from 1900 to 2015?

Average rate of return _______%

b.What was the average risk premium on common stocks?

Average risk premium _________%

c.What was the standard deviation of returns on common stocks?

Standard Deviation of returns _________%