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O Problem 11. [8 pts] Mr Beeya has the following long-run annual rates of return for different investment instruments: U.S. Government T-bills 2.00% Large-cap common

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O Problem 11. [8 pts] Mr Beeya has the following long-run annual rates of return for different investment instruments: U.S. Government T-bills 2.00% Large-cap common stock 20.75% Long-term corporate bonds 11.75% Long-term government bonds 9.40 % Small-capitalization common stock 28.10 % Based on the information above: a) Estimate/compute the Common Stock Risk Premium, Small Firms Stock Risk Premium, Horizon (Maturity) Premium, and Default Premium. O

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