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Consider the following table for a period of six years.

	Returns
Year	Large-Company Stocks					U.S. Treasury Bills
Year 1		–	15.39	%		7.43	%
Year 2		–	26.68			8.06
Year 3			37.37			6.01
Year 4			24.07			5.77
Year 5		–	7.44			5.52
Year 6			6.71			7.85

Requirement 1:

Calculate the arithmetic average returns for large-companystocks and T-bills over this time period.(Do not round intermediate calculations.Enter your answers as a percentage rounded to 2decimal places (e.g., 32.16).)

	Arithmetic average returns
Large-company stock	%
T-bills	%

Requirement 2:

Calculate the standard deviation of the returns forlarge-company stocks and T-bills over this time period.(Do not round intermediate calculations.Enter your answers as a percentage rounded to 2decimal places (e.g., 32.16).)

	Standard deviation
Large-company stock	%
T-bills	%

Requirement 3:
Calculate the observed risk premium in each yearfor the large-company stocks versus the T-bills.
(a)	What was the arithmetic average risk premium over this period?(Negative amount should be indicated by a minussign. Do not round intermediate calculations.Enter your answer as a percentage rounded to 2decimal places (e.g., 32.16).)

Risk premium

%

(b)	What was the standard deviation of the risk premium over thisperiod? (Do not round intermediatecalculations. Enter your answer as a percentagerounded to 2 decimal places (e.g.,32.16).)

Risk premium standard deviation

%