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What was the standard deviation of the risk premium

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Reference no: EM132528151

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

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

2013 34.50 0.16

2014 14.20 0.16

2015 -4.10 0.16

2016 15.30 0.03

2017 24.60 0.05

a.  What was the risk premium on common stock in each year? (do not round intermediate calculations. enter your answer as a pecent runded to 2 decimal places.)

b. What was the average risk premium?

c. What was the standard deviation of the risk premium? (ignore that the estimation is from a sample data.)

Reference no: EM132528151

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