If the Variability of the Returns on Large-Company Stocks Were

Multiple Choice

If the variability of the returns on large-company stocks were to decrease over the long-term, you would expect which one of the following as related to large-company stocks to occur as a result?

A) Increase in the risk premium
B) Increase in the average long-term rate of return
C) Decrease in the 68 percent probability range of returns
D) Increase in the standard deviation
E) Increase in the geometric average rate of return