What was the risk premium on common stock in each year

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Reference no: EM133160933

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

Year

Stock Market Return (%)

T-Bill Return (%)

2013

34.20

0.14

2014

13.90

0.14

2015

-3.00

0.14

2016

14.80

0.09

2017

24.30

0.11

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?

Reference no: EM133160933

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