For the Period 1926-2012 Small-Company Stocks Had an Average Return

Multiple Choice

For the period 1926-2012 small-company stocks had an average return of 16.5 percent.U.S.Treasury bills returned 3.6 percent and inflation averaged 3.1 percent.Small-company stocks had an approximate real rate of return of _____ percent and a risk premium of _____ percent.

A) 12.9;13.4
B) 12.9;9.8
C) 13.4;12.9
D) 13.4;9.8
E) 9.8;12.9