Assume these are the stock market and Treasury bill returns for a 5-year period:
Year Stock Market Return (%)T-Bill Return (%)
2011 0.98 0.03
2012 16.06 0.05
2013 33.06 0.07
2014 12.71 0.05
2015 0.67 0.21
a. What was the risk premium on common stock in each year?
Year Risk Premium
2011 ____ %
2012 ___ %
2013 ___%
2014 ____%
2015 ____ %