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Consider the following table for a period of six years

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Consider the following table for a period of six years.

1: Calculate the arithmetic average returns for large-company stocks and T-bills over this time period.

2: Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period.

3: 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?

(b) What was the standard deviation of the risk premium over this period?