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Consider the data in below table Average return on large cap stocks 10.90% Average return on small cap stocks 13.20% U.S. Treasury Bills 2.3% Inflation

Consider the data in below table

Average return on large cap stocks

10.90%

Average return on small cap stocks

13.20%

U.S. Treasury Bills

2.3%

Inflation

2%

Calculate risk premium on large cap stocks

Calculate the real risk premium large cap stocks

Calculate real return on small cap stocks

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