Q7. See attachment

Arrow Check my work 7 r Erro Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill Full sample 3. 38 2 . 25 0 . 46 3. 12 4.00 3. 76 1927-1951 0. 95 1. 79 -0. 47 1 . 24 6 .04 6.33 1952-2018 4. 26 3.46 0.81 3.13 2. 89 2. 12 1.25 points Market Big/ Big/ Small/ Small / (1927-2018) Index Growth Value Growth Value Mean excess return ( annualized) 8.29 8. 07 11. 69 8. 99 15 . 38 eBook Standard deviation (annualized) 18.52 18.35 24.70 26.06 28 . 21 Print References Suppose that the inflation rate is expected to be 2.25% in the near future using the data provided above, what would be your predictions for the following? (Round your answers to 2 decimal places.) a. The T-bill rate? 6.09 % b. The expected rate of return on the Big/Value portfolio? C. The risk premium on the stock market? Mc Graw