Question: Problem 37 Intro Below are the expected returns for different asset classes for next year: Asset class Exp. return T-bills 2.2% Corporate bonds 6.6% Small

Problem 37

Intro

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

Asset class Exp. return
T-bills 2.2%
Corporate bonds 6.6%
Small company stocks 15.6%
Large company stocks 9.5%

Attempt 1/10 for 8 pts.

Part 1

What is the risk premium for corporate bonds?

Attempt 1/10 for 8 pts.

Part 2

What is the risk premium for small company stocks?

Attempt 1/10 for 8 pts.

Part 3

What is the risk premium for large company stocks?

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