14) Suppose that the inflation rate is expected to be 3% in the near future. Using the historical data provided in this chapter, what would be your predictions for:

A) The T-bill rate?

B) The expected rate of return on the Big/Value portfolio?

C) The risk premium on the stock market?

This is the only table showing historical information for tbill rates, inflation rates, and real rates, 1926-2015.

Table 5.2 Statistics for T-bill rates, inflation rates, and real rates, 1926-2015 Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46 3.00 0.56 3.12 4.07 3.81 First half 6.27 1.04 1.68 -0.29 1.29 5.95 Recent half 0.90 2.13 4.45 3.53 3.11 2.89 Table 5.2 Statistics for T-bill rates, inflation rates, and real rates, 1926-2015 Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46 3.00 0.56 3.12 4.07 3.81 First half 6.27 1.04 1.68 -0.29 1.29 5.95 Recent half 0.90 2.13 4.45 3.53 3.11 2.89