What was the risk premium on common stock in each year

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Reference no: EM132919771

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

Year

Stock Market Return (%)

T-Bill Return (%)

2013

34.30

0.15

2014

14.00

0.15

2015

-3.90

0.15

2016

15.10

0.10

2017

24.50

0.12

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?

d. What was the average risk premium?

Reference no: EM132919771

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