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The Returns on Small Company Stocks Are 10

Question 24

Multiple Choice

The returns on small company stocks are 10.7%, U.S. Treasury bill offer a 1.3% return and a bank savings account offers an 0.8% return. What is the risk premium on small company stocks?


A) 10.7%
B) 9.4%
C) 12.0%
D) 9.9%

Correct Answer:

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