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Problem 11-6 Risk Premiums (LO1) Assume these are the stock market and Treasury...

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Accounting

Problem 11-6 Risk Premiums (LO1)
Assume these are the stock market and Treasury bill returns for a 5-year period:
\table[[Year,\table[[Stock Market],[Return (%)]],\table[[T-Bill Return],[Yo13]]],[2013,33.20,0.11],[2014,12.70,0.11],[2015,-3.20,0.11],[2016,14.40,0.06],[2017,23.50,0.08]]
Required:
a. What was the risk premium on common stock in each year?
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.)
Complete this question by entering your answers in the tabs below.
Required A
Required B
What was the risk premium on common stock in each year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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