please please help!!! Consider the following table for a period of six years:Year12GUAWN3456ReturnsLarge-CompanyStocks-15.79%-26.8037.4524.15-7.606.79U.S. TreasuryBills7.51%a-1. Arithmetic average returna-2. Standard deviationa-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period.Note: 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 over this time period.Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.8.106.096.175.567.97b-1. Average risk premiumb-2. Risk premium standard deviationLarge-companystocks%%T-billsCalculate the observed risk premium in each year for the large-company stocks versus the T-bills.b-1. What was the arithmetic average risk premium over this period?Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.b-2. What was the standard deviation of the risk premium over this period?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.%%%%

Standard deviation is a statistical measure of the amount of variability or dispersion in a set of…

Consider the following table for a period of six years: Year 1 2 3 4 Returns Large-Company Stocks -15.798 -26.80 37.45 24.15 -7.60 6.79 U.S. Treasury Bills 7.518 8.10 6.09 6.17 5.56 7.97 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. Note: 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 over this time period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-1. Arithmetic average return a-2. Standard deviation Large-company stocks % % b-1. Average risk premium b-2. Risk premium standard deviation T-bills Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. b-1. What was the arithmetic average risk premium over this period? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer percent rounded to 2 decimal places, e.g., 32.16. % b-2. What was the standard deviation of the risk premium over this period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD