Consider the information below for questions 16 to 18. These are the historical average returns for stocks, long term bonds (with 10-years to maturity) and short-term treasuries taken over the previous 5, 10, and 50 years for a given country: Past 5 years Past 10 years Past 50 years Stock market 9.5% 5.6% 6.3% Long term 7.2% 3.3% 4.2% bonds Short-term 1% 3.1% treasuries 21% The current yield on a 10-years to maturity bond is 0.8% and for a short-term treasury it is 1.25%. The beta of "Ni Hao, Inc" estimated from a regression of monthly returns over the past 5, 10, and 50 years is, respectively, 0.6, 1.3, and 1.8. What is your estimate of the equity risk premium using long-term bonds as the riskless asset? (chose the closest number) Select one: a. 0.8% O b. 2.1% O c. 2.3% d. 3.3% O e. 5.5% Consider the information below for questions 16 to 18. These are the historical average returns for stocks, long term bonds (with 10-years to maturity) and short-term treasuries taken over the previous 5, 10, and 50 years for a given country: Asset Past 5 years Past 10 years Past 50 years Stock market 9.5% 5.6% 6.3% Long term 7.2% 3.3% 4.2% bonds 1% 2.1% Short-term treasuries The current yield on a 10-years to maturity bond is 0.8% and for a short-term treasury it is 1.25%. The beta of "Ni Hao, Inc" estimated from a regression of monthly returns over the past 5, 10, and 50 years is, respectively, 0.6, 1.3, and 1.8. Assuming a constant equity risk premium over long-term bonds, what is your estimate of the expected return of stocks for the next 10 years? (chose the closest number) Select one: O a. 2.9% oo O b. 4.75% O c.5.6% d. 3.3% O e. 8.25% Cursuer ure Old Ir velUW TUI questurs 16 LU 17. These are the historical average letur TUI SUCRS, Tony tell Dunius (WILT 10-years to maturity) and short-term treasuries taken over the previous 5, 10, and 50 years for a given country: Asset Past 5 years Past 10 years Past 50 years Stock market 9.5% 5.6% Long term 7.2% 3.3% 4.2% bonds 6.3% Short-term 1% 2.1% 3.1% treasuries The current yield on a 10-years to maturity bond is 0.8% and for a short-term treasury it is 1.25%. The beta of "Ni Hao, Inc" estimated from a regression of monthly returns over the past 5, 10, and 50 years is, respectively, 0.6, 1.3, and 1.8. What is your estimate of the opportunity cost of equity for "Ni Hao, Inc" using short-term treasuries as the riskless asset? (chose the closest number) Select one: O a. 7.01% O b.4.96% c. 5.41% d. 3.17% GEO/