Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return (%) 0.02 0.02 0.02 0. 20 Return (%) Year 2013 2014 2015 2016 2017 31.7 10.9 -1.6 13.0 21.3...

Assume these are the stock market and Treasury bill returns for a 5-year period:<br>Stock Market T-Bill Return<br>(%)<br>0.02<br>0.02<br>0.02<br>0. 20<br>Return (%)<br>Year<br>2013<br>2014<br>2015<br>2016<br>2017<br>31.7<br>10.9<br>-1.6<br>13.0<br>21.3<br>0.80<br>Required:<br>a. What was the risk premium on common stock in each year? (Negative values should be entered with a negative sign.)<br>b. What was the average risk premium?<br>c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)<br>

Extracted text: Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return (%) 0.02 0.02 0.02 0. 20 Return (%) Year 2013 2014 2015 2016 2017 31.7 10.9 -1.6 13.0 21.3 0.80 Required: a. What was the risk premium on common stock in each year? (Negative values should be entered with a negative sign.) 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 of data.)

Jun 01, 2022

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Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return (%) 0.02 0.02 0.02 0. 20 Return (%) Year 2013 2014 2015 2016 2017 31.7 10.9 -1.6 13.0 21.3...

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