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The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills (Rf asset) CPI (inflation) 2016 12.95% 2.35% 0.20%

The following return series comes from Global Financial Data.

Year Large Stocks LT Gov Bonds US T-bills (Rf asset) CPI (inflation)
2016 12.95% 2.35% 0.20% 1.90%
2017 18.63% 5.75% 0.60% 1.80%
2018 -5.28% -1.25% 0.80% 2.10%
2019 25.45% 3.35% 1.20% 1.10%
2020 19.12% 9.30% 1.50% 2.10%

Using the approximate fisher equation, calculate the average real risk premium earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)

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