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Below are the expected returns for different asset classes for next year: Asset class Exp. return T-bills 2.9% Corporate bonds 5.7% Small company stocks 18.7%

Below are the expected returns for different asset classes for next year:

Asset class Exp. return
T-bills 2.9%
Corporate bonds 5.7%
Small company stocks 18.7%
Large company stocks 13.3%

1a. What is the risk premium for corporate bonds?

1b. What is the risk premium for small company stocks?

1c. What is the risk premium for large company stocks?

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