Determine the average risk premium

Assignment Help Risk Management

Reference no: EM1346761

Here are stock market and Treasury bill percentage returns between 2006 and 2010:

Year Stock Market Return T-Bill Return
2006 17.27 6.30
2007 7.41 6.06
2008 ?38.83 1.80
2009 29.70 0.90
2010 19.36 0.52

a. What was the risk premium on common stock in each year? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

Year Risk Premium
2006 __________ %
2007 ___________%
2008 ___________ %
2009 ____________%
2010 ____________%

b. What was the average risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Average risk premium = _________ %

c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation of the risk premium = ___________ %

Reference no: EM1346761

Questions Cloud

Prepare appropriate journal entries to record salaries : Lee Financial Services pays employees monthly. Payroll information is given below for January 2011, 1st month of Lee's fiscal year. Suppose that none of employees exceeded any relevant wage base.

Genetics experiment on peas : In a heredity experiment on peas, one sample of offspring contained 410 green peas & 121 yellow peas. Based on those final outcomes, determine the probability of getting an offspring pea that is green.

Create i.c. optometrys balance sheet : The following are account balances on December 31, 2011 for I.C. Optometry given in alphabetical order;

Hypothetical healthcare organization ratios : Discuss and explain why one should apply caution when using financial ratios for analyzing a healthcare management's current financial position and future viability.

Determine the average risk premium : Here are stock market & Treasury bill percentage (%) returns between 2006 and 2010: Determine the average risk premium

Write a perl program : Write perl program which will run on my system and will start another perl program on another linux system. The main program should wait for linux perl program to complete its work and send the result to my main perl program.

Write c++ programs : Write a C++ program to accept distance in kilometers, coverts it to meters and then displays the result. Write a C++ program to find area and circumference of a circle.

What is the project’s npv without the option to expand : The risk free rate is 5%.(a) What is the project’s NPV without the option to expand?(b) What is its ROA (real option analysis value) with the option to expand?

Measurement models goal programming outranking : I would like to use the each following methods to answer the (same question) as attached : VALUE MEASUREMENT MODELS GOAL PROGRAMMING OUTRANKING (ELECTRE I)

User Account

All Pages