The Total Annual Returns on Large Company Common Stocks Averaged

Multiple Choice

The total annual returns on large company common stocks averaged 12.3% from 1926 to 2008, 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 the above