The total annual returns on large company US ordinary shares averaged 12.4% from 1926 to 2005 small company shares averaged 17.5%,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 shares respectively?
A)1.8%; 13.3%
B)2.0%; 13.7%
C)4.4%; 11.9%
D)9.5%; 1.8%
E)None of the above.

Question

Quizplus · Accepted Answer

The Answer of The total annual returns on large company US ordinary shares averaged 12.4% from 1926 to 2005 small company shares averaged 17.5%,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 shares respectively?
A)1.8%; 13.3%
B)2.0%; 13.7%
C)4.4%; 11.9%
D)9.5%; 1.8%
E)None of the above.

The Total Annual Returns on Large Company US Ordinary Shares