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For the Period 1926 to 2015,small-Company Stocks Had an Average

Question 76

Multiple Choice

For the period 1926 to 2015,small-company stocks had an average return of 16.5 percent,U.S.Treasury bills returned 3.5 percent,and inflation averaged 3.0 percent.What was the risk premium on small-company stocks during this period?


A) 12.5 percent
B) 20.0 percent
C) 13.0 percent
D) 13.5 percent
E) 10.0 percent

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