You expect the inflation rate to be 1.5 percent and the U.S. Treasury bill yield to be 1.8 percent for the next year. The risk premium on small-company stocks is 9.2 percent. What rate of return do you expect to earn on small-company stocks next year? a. 9.5 percent b. 10.7 percent c. 12.5 percent d. 11.0 percent

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