The average annual return on small company stocks was about _____ percentage points greater than the average annual return on large-company stocks over the period of 1926 to 2011.
A) 3
B) 5
C) 7
D) 9
E) 11

Question

Quizplus · Accepted Answer

According to historical stock market data, small company stocks had an average annual return of 12.9% from 1926 to 2011, while large-company stocks had an average annual return of 10.0%. Therefore, the difference between the two is 2.9 percentage points, which rounds up to 5. Therefore, B is the best choice.

The Average Annual Return on Small Company Stocks Was About