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Recalling the definitions of risk premiums from Chapter 9 and using the Treasury bill return in Table 1 2 . 4 as an approximation to

Recalling the definitions of risk premiums from Chapter 9 and
using the Treasury bill return in Table 12.4 as an approximation to
the nominal risk-free rate, what is the risk premium from investing in
each of the other asset classes listed in Table 12.4?
Asset Treasury Bills Treasury Bonds Common Stocks Inflation Rate
Average Annual Return 3.58%5.23%11.37%3.07%
Standard Deviation 3.11%7.79%19.83%3.88%

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