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3) (2 pts) Over the last 10 years, the annual return on a 3-month Treasury Bill averaged 2.6% and Inflation averaged 1.8%. Large Stocks had

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3) (2 pts) Over the last 10 years, the annual return on a 3-month Treasury Bill averaged 2.6% and Inflation averaged 1.8\%. Large Stocks had a average annual return of 12%. What was the average real rate of return for Large Stocks over the last 10 years? What was the average risk premium for Large stocks over the last 10 years? 4) (2 pts) Assume that Smal Company stocks had an average return of 14% and a standard deviation of 26% over the last 30 years. What range of returns would you expect to see on Small Copany stocks 68% of the time? to

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