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 bonds 7.2% 3.3% 4.2% Short-term treasuries 1% 2.1% 3.1% 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)