Transcribed Image Text
Assume these are the stock market and Treasury bill returns fora 5-year period:YearStock Market ReturnT-Bill Return Year 1?35.733.10 Year 230.101.50 Year 315.56.21 Year 42.38.06 Year 518.26.08a.What was the risk premium on common stock in each year?(Negative amounts should be indicated by a minus sign. Donot round intermediate calculations. Enter your answers as apercent rounded to 2 decimal places.)Year Risk premiumYear 1% Year 2% Year 3% Year 4% Year 5% b.What was the average risk premium? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.) Average risk premium% c.What was the standard deviation of the risk premium? (Donot round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.) Standard deviation%