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4. From the average returns below, compute the market risk premium for Small Cap Stocks Asset Average Return Risk Premium Large Cap Stocks 11.8% Small

4. From the average returns below, compute the market risk premium for Small Cap Stocks

Asset	Average Return	Risk Premium
Large Cap Stocks	11.8%
Small Cap Stocks	16.5%	?
Long-Term Coporate Bonds	6.4%
Intermediate-Term Government Bonds	5.5%
U.S. Treasury Bills	3.8%

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