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Hera are data stock market and Treasury bill percentage returns between 2006 and 2010. (L01)

Year Stock A Stock B

2006 15.77 4.80

2007 5.61 4.66

2008 -37.23 1.60

2009 28.30 0.10

2010 17.16 0.12

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?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944073

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