Problem Risk Premiums LO
Assume these are the stock market and Treasury bill returns for a year period:
tableYeartableStock MarketReturn tableTBill ReturnYo
Required:
a What was the risk premium on common stock in each year?
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.
Complete this question by entering your answers in the tabs below.
Required A
Required B
What was the risk premium on common stock in each year? Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
