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Over the Period of 1926-2011

Question 1

Multiple Choice

Over the period of 1926-2011:


A) the risk premium on large-company stocks was greater than the risk premium on small- company stocks.
B) U.S. Treasury bills had a risk premium that was just slightly over 2 percent.
C) the risk premium on long-term government bonds was zero percent.
D) the risk premium on stocks exceeded the risk premium on bonds.
E) U. S. Treasury bills had a negative risk premium.

Correct Answer:

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