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Given the following information,calculate the equity risk premium for small-company stocks. (Enter percentages as decimals and round to 4 decimals).

Small-company stocks average return: 16.5%

Large-company stocks average return: 11.9%

Long-term government bonds average return: 6.3%

U.S. Treasury Bills average return: 3.5%

Inflation 3.0%

Please show your work.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92857937

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