Question
Below are the expected returns for different asset classes for next year: Asset class Exp. return T-bills 1.2% Corporate bonds 5.9% Small company stocks 18.9%
Below are the expected returns for different asset classes for next year:
| Asset class | Exp. return |
| T-bills | 1.2% |
| Corporate bonds | 5.9% |
| Small company stocks | 18.9% |
| Large company stocks | 10% |
1. What is the risk premium for corporate bonds?
2. What is the risk premium for small company stocks?
3. What is the risk premium for large company stocks?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
