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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 6.5% Small company stocks 15.6%

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

Asset class Exp. return
T-bills 1.2%
Corporate bonds 6.5%
Small company stocks 15.6%
Large company stocks 10.2%

Attempt 1/5 for 10 pts.

Part 1

What is the risk premium for corporate bonds?

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Part 2

What is the risk premium for small company stocks?

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Part 3

What is the risk premium for large company stocks?

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