Question: The following return series comes from Global Financial Data. Year 2016 2017 2018 2019 2020 Large Stocks 12.95% 18.63% -5.28% 25.45% 19.12% LT Gov

The following return series comes from Global Financial Data. Year 2016 2017

The following return series comes from Global Financial Data. Year 2016 2017 2018 2019 2020 Large Stocks 12.95% 18.63% -5.28% 25.45% 19.12% LT Gov Bonds 2.35% 5.75% -1.25% 3.35% 9.30% US T-bills (Rf asset) 0.20% 0.60% 0.80% 1.20% 1.50% CPI (inflation) 1.90% 1.80% 2.10% 1.10% 2.10% A. calculate the average risk premium earned on large company stocks. B. using the approximate Fisher equation, calculate the risk value premium earned on large companies stocks. c. calculate the average risk premium earned on US. t-bills.

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