We learned that if the market interest rate for a given bond increased, the price of the bond would decline. Applying this same logic to stocks, explain

(a) how a decrease in risk aversion would affect stocks' prices and earned rates of return;

(b) how this would affect risk premiums as measured by the historical differences between returns on stocks and returns on bonds; and

(c) what the implications of this would be for the use of historical risk premiums when applying the CAPM equation.