The following table summarizes risk premiums for stocks in the United States, relative to treasury bills and bonds, for different time periods:

Risk Premium for Equity

	Stocks - T.Bills		Stocks - T.Bonds
	Arithmetic	Geometric	Arithmetic	Geometric
1928-2011	7.55%	5.79%	5.62%	4.10%
1962-2011	5.38%	3.36%	4.02%	2.35%
2002-2011	3.12%	-1.92%	1.08%	-3.61%

A) What risk premium do you use? Why?

B) Why 10 years T-Bond issued by Germany and Japan currently trade at a negative rate?

C) If you had to use a risk premium with the longer periods, what biases will the investor have?

Please answer fast. Thank you!