Question: Intro Below are the expected returns for different asset classes for next year: Asset class Exp. return T-bills 2% Corporate bonds 4.5% Small company stocks

Intro

Below are the expected returns for different asset classes for next year:

Asset class Exp. return
T-bills 2%
Corporate bonds 4.5%
Small company stocks 17.1%
Large company stocks 13.2%

Part 1

What is the risk premium for corporate bonds? (4+ decimals)

Part 2

What is the risk premium for small company stocks? (3+ decimals)

Part 3

What is the risk premium for large company stocks? (3+ decimals)

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