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Business, 31.05.2020 22:59 yorbal171

Year Stock Market Return (%) T-Bill Return (%)
2013 34.90 0.18
2014 14.70 0.18
2015 −4.60 0.18
2016 16.00 0.05
2017 25.00 0.07

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.)

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Year Stock Market Return (%) T-Bill Return (%)
2013 34.90 0.18
2014 14.70 0.18
2...
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