Assume these are the stock market and Treasury bill returns for a 5-year period: ...
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Accounting
Assume these are the stock market and Treasury bill returns for a 5-year period:
| Year | Stock Market Return (%) | T-Bill Return (%) | ||||||
| 2011 | 33.53 | 4.60 | ||||||
| 2012 | 32.20 | 1.00 | ||||||
| 2013 | 14.06 | 0.29 | ||||||
| 2014 | 4.18 | 0.06 | ||||||
| 2015 | 20.16 | 0.08 | ||||||
a. What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. What was the average risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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