You expect the inflation rate to be 2.9 percent and the U.S. Treasury bill yield to be 3.7 percent for the next year. The risk premium on small-company stocks is 12.6 percent. What nominal rate of return do you expect to earn on small-company stocks next year?
15.5 percent
16.3 percent
16.8 percent
9.2 percent
9.7 percent