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What are the two general types of premiums?
Excess Returns
The return on an investment that exceeds the benchmark or risk-free return, reflecting the additional risk taken by the investor.
Small-company Stocks
Equity investments in companies with smaller market capitalization, often characterized by higher volatility and growth potential compared to large-cap stocks.
Large-company Stocks
Shares of large capitalization companies, often known for their stability and paying dividends.
Treasury Bills
Short-term government securities issued at a discount from the face value and mature in a year or less.
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