Multiple Choice
The total annual returns on large company common stocks averaged 12.3% from 1926 to 2011,small company stocks averaged 17.4%,long-term government bonds averaged 5.8%,while Treasury Bills averaged 3.8%. What was the average risk premium earned by long-term government bonds,and small company stocks respectively?
A) 1.8%; 13.3%
B) 2.0%; 13.6%
C) 4.4%; 11.9%
D) 9.5%; 1.8%
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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