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Part $1$

Consider the following average annual$$ returns:

Investment

Average Return

Small Stocks

$23\mathrm{.}8\%$

$$S&P $500$

$13\mathrm{.}3\%$

Corporate Bonds

$7\mathrm{.}6\%$

Treasure Bonds

$6\mathrm{.}2\%$

Treasury Bills

$4\mathrm{.}7\%$

What is the excess return for the portfolio of small$$ stocks?