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Risk premium on common stock

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Assume these are the stock market and Treasury bill returns for a 5-year period:

Year Stock Market Return (%)T-Bill Return (%)

2011   0.98   0.03 

2012    16.06   0.05 

2013    33.06   0.07 

2014   12.71   0.05 

2015   0.67   0.21 

a. What was the risk premium on common stock in each year?

Year Risk Premium

2011 ____ %

2012 ___ %

2013 ___%

2014 ____%

2015 ____ %

Reference no: EM131975494

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