Standard deviation of returns for large company stocks

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Reference no: EM131499611

large company stocks

year 1: -15.49 percent

year 2: -26.71 percent

year 3: 37.39 percent

year 4: 24.09 percent

year 5: -7.48 percent

year 6: 6.73 percent

US Treasury bills

year 1: 7.45 percent

year 2: 8.07 percent

year 3: 6.03 percent

year 4: 5.87 percent

year 5: 5.53 percent

year 6: 7.88 percent

Calculate the standard deviation of the returns for large company stocks and t-bills over this time period.

large company stocks _____ percent

t-bills _______ percent

Calculate the observed risk premium in each year for the large company stocks versus the t-bills.

What was the arithmetic average risk premium over this period?

risk premium _______ percent

What was the standard deviation of the risk premium over this period?

risk period standard deviation _____ percent.

Reference no: EM131499611

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