a. What was the risk premium on common stock in each year? (Negative values should be entered with a nega sign.) 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.)

a. What was the risk premium on common stock in each year? (Negative values should be entered with a nega sign.) 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.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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Help
Iyuntu.
a. What was the risk premium on common stock in each year? (Negative values should be entered with a negat
sign.)
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
Required C
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.)
Year
Risk Premium
2013
%
2014
2015
2016
2017
%
Required B >
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立

Assume these are the stock market and Treasury bill returns for a 5-year period:
Stock Market
T-Bill
Year
Return (%)
Return (%)
2013
31.7
0.02
2014
10.9
0.02
2015
-1.6
0.02
2016
13.0
0.20
2017
21.3
0.80
Required:
a. What was the risk premium on common stock in each year? (Negative values should be entered with a negative
sign.)
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.)
es
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
What was the risk premium on common stock in each vear? (Do not round intermediate calculations. Enter vour answers as
< Prev
2 of 5
Next >
e to search

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