The Total Annual Returns on Large Company Common Stocks Averaged

Multiple Choice

The total annual returns on large company common stocks averaged 11.8% from 1926 to 2012,small company stocks averaged 16.5%,long-term government bonds averaged 6.1%,while Treasury Bills averaged 3.6%.What was the average risk premium earned by long-term government bonds,and small company stocks respectively?

A) 1.8%;13.3%
B) 2.5%;12.9%
C) 4.4%;11.9%
D) 9.5%;1.8%
E) None of the above