On average,for the period 1926 to 2015
A)U.S.Treasury bills had a negative risk premium.
B)small-company stocks underperformed large-company stocks.
C)large-company stocks had a higher risk premium than long-term corporate bonds.
D)intermediate-term government bonds produced higher returns than long-term government bonds.
E)large-company stocks had a higher risk premium than small-company stocks.

Question

Quizplus · Accepted Answer

According to historical data, large-company stocks had a higher risk premium (return over the risk-free rate) than long-term corporate bonds.

On Average,for the Period 1926 to 2015