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Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46 1.80 0.56 3.12 4.07 3.81 First half 1.04 1.68

Average Annual Rates Standard Deviation
T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill
All months 3.46 1.80 0.56 3.12 4.07 3.81
First half 1.04 1.68 0.29 1.29 5.95 6.27
Recent half 4.45 3.53 0.90 3.11 2.89 2.13

(1926-2016) Market Index Big/ Growth Big/ Value Small/ Growth Small/ Value
Mean excess return (annualized) 0.83 7.98 11.67 8.79 15.56
Standard deviation (annualized) 18.64 18.50 24.62 26.21 28.36

Using the data provided above, what would be your predictions for the following? (Round your answers to 2 decimal places.)

a. The T-bill rate? %
b. The expected rate of return on the Big/Value portfolio? %
c. The risk premium on the stock market?

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