Consider the following table for a period of six
years:
Returns | |||||||
Year | Large-Company Stocks | U.S. Treasury Bills | |||||
1 | –15.59 | % | 7.47 | % | |||
2 | –26.74 | 8.08 | |||||
3 | 37.41 | 6.05 | |||||
4 | 24.11 | 5.97 | |||||
5 | –7.52 | 5.54 | |||||
6 | 6.75 | 7.91 | |||||
Calculate the arithmetic average returns for large-company stocks
and T-bills over this time period. (Do not round
intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
Arithmetic average returns | |
Large-company stock | % |
T-bills | % |
Calculate the standard deviation of the returns for large-company
stocks and T-bills over this time period. (Do not round
intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
Standard deviation | |
Large-company stock | % |
T-bills | % |
Calculate the observed risk premium in each year for the
large-company stocks versus the T-bills.
a. What was the arithmetic average risk premium
over this period? (A negative answer should be indicated by
a minus sign. Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average risk premium
%
b. What was the standard deviation of the risk
premium over this period? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Risk premium standard deviation
%
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Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury Bills...
Consider the following table for a period of six years: Year Returns Large- U.S. Company Treasury Bills Stocks - 15.59% 7.47% -26.74 8.08 37.41 6.05 24.11 5.97 - 7.52 5.54 6.75 7.91 ou WN- a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and...
Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury Bills 1 – 15.89 % 7.53 % 2 – 26.83 8.11 3 37.47 6.11 4 24.17 6.27 5 – 7.64 5.57 6 6.81 8.00 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of...
Consider the following table for a period of six years: Year Returns Large- U.S. Company Stocks Treasury Bills - 16.39% 7.63% -26.98 8.16 37.57 6.21 24.27 6.77 - 7.84 5.62 6.91 8.15 Un a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills...
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year 1 2 3 Large Company US Treasury Bill 4.00% 4.62% 14.49 4.96 19.33 3.88 -14.35 7.00 -31.84 5.38 37.04 6.43 5 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for...
Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Year Large Company US Treasury Bill 6.59 3.97 1 2 14.34 4.42 19.23 4.29 7.32 4 -14.45 -31.94 5.28 5.38 6 37.47 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns Large company stocks T-bills b. Calculate the...
Consider
the following rates of return: Year Large-Company Stocks US
Treasury Bills 1 3.99 % 4.59 % 2 14.16 4.94 3 19.25 3.86
4 –14.43 6.99
5 –31.92 5.30 6 37.49 6.20 a. Calculate the arithmetic average
returns for large-company stocks and T-bills over this period b.
Calculate the standard deviation of the returns for large-company
stocks and T-bills over this period. c. Calculate the observed risk
premium in each year for the large-company stocks versus the
T-bills. What was...
Consider the following rates of return: US Large- Year Company Stocks 1 3.66 % 14.44 3 19.03 -14.65 -32.14 6 37.27 Treasury Bills 4.66 % 2.33 4.12 5.88 4.90 6.33 5 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns Large-company stocks T-bills b. Calculate the standard deviation of the returns for large-company stocks...
value 1.66 points Problem 10-8 Risk Premiums Consider the following rates of return US Large- Year Company Stocks 370 2 14.36 3 19.35 4 -14.33 5 -31.82 6 37 06 Treasury Bus 4.78 % 3.61 4.20 5.92 5.40 5.41 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns Large-company stocks T-bills b. Calculate the...
Need help with b1 and b2 please explain with details.Thx
Consider the following table for a period of six years: Returns Large- Company Stocks U.S Treasury Bills Year 1 -15.29% 7.41% 2 -26.65 8.05 3 37.35 24.05 5.99 4 5.67 5 7.40 5.51 6 6.69 7.82 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)...
Consider the following information on large company stocks for a period of years. Large-company stocks Inflation Arithmetic Mean 15.58 3.6 a. What was the arithmetic average annual return on large-company stocks In nominal terms? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Nominal return b. What was the arithmetic average annual return on large-company stocks in real terms? (Do not round Intermediate calculations and enter your answer as a...