Solved: What is the small firm stock risk premium, Finance Basics

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What is the small firm stock risk premium

Problem:

Security Annual Percentage Return

U.S. government T-bills                    7.56
Long-term government bonds          10.12
Long-term corporate bonds    11.64
Large capitalization common stocks 13.23
Small capitalization common stocks 15.46

What is the maturity premium?

Use same data as above. What is the small firm stock risk premium?

Please show calculations.

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Finance Basics: What is the small firm stock risk premium

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