Which one of the following has the highest risk premium based on historical information?
A) Canadian Treasury bill
B) Corporate bonds
C) Large-company stocks
D) Government bonds
E) Small-company stocks

Question

Quizplus · Accepted Answer

Historically, small-company stocks have had the highest risk premium compared to other investment options like Canadian Treasury bills, corporate bonds, large-company stocks, and government bonds. This is because small-company stocks tend to be more volatile and riskier, but they offer the potential for higher returns to compensate for this increased risk.

Which One of the Following Has the Highest Risk Premium