Learning Objective: The historical returns and risks on various
important types of investment a) Find the average return and
standard deviation on both types of investment b) Find the average
risk premium Large Year Stocks 1970 -3.57% 1971 8.01% 1972 27.37%
1973 0.27% 1974 -25.93% 1975 18.48% T-bills 6.89% 3.86% 3.43% 4.78%
7.68% 7.05%
Learning Objective: The historical returns and risks on various important types of investment a) Find the average return
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