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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?

Asset class	Exp. return
T-bills	1.2%
Corporate bonds	5.9%
Small company stocks	18.9%
Large company stocks	10%

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