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Consider the following table for the period from 1973 through 1978. Returns Year Large-Company Stocks U. Treasury Bills 1973 - 14.69 % 7.29 % 1974 -...

This question was answered on Jan 12, 2013. View the Answer
Consider the following table for the period from 1973 through 1978.

Returns
Year Large-Company Stocks U.S.
Treasury Bills
1973 – 14.69 % 7.29 %
1974 – 26.47 7.99
1975 37.23 5.87
1976 23.93 5.07
1977 – 7.16 5.45
1978 6.57 7.64
Calculate the arithmetic average returns for large-company stocks and T-bills over this time period.
Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period.
Standard deviation
Large company stock ______%
T-bills ______%
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?
What was the standard deviation of the risk premium over this period?

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Top Answer

Hi I have cross checked it looks nothing wrong kindly check... View the full answer

This question was asked on Jan 10, 2013 and answered on Jan 12, 2013.

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