Based on the past 88 years, the inflation rate averaged 3.0 percent and the U.S. Treasury bill yield was 3.5 percent, and the historical risk premium on small-company stocks was 13.2 percent. If these averages hold, what nominal rate of return should you expect to earn on small-company stocks over the next several years?
19.7 percent
15.5 percent
13.5 percent
16.7 percent
13.7 percent