Based on the period of 1926-2018, the risk premium for small-company stocks averaged:
A)12.3%
B)12.8%
C)15.0%
D)16.8%
E)17.4%

Question

Quizplus · Accepted Answer

The risk premium for small-company stocks averaged 12.8% during the period of 1926-2018. This figure is derived from historical financial data comparing the returns of small-company stocks to less risky investments, such as government bonds, to calculate the additional return (or premium) investors could expect for taking on the increased risk of investing in smaller companies.

Based on the Period of 1926-2018, the Risk Premium for Small-Company