Based on the period of 1926-2012,the risk premium for small-company stocks averaged:
A)12.3 percent.
B)13.9 percent.
C)15.0 percent.
D)16.8 percent.
E)17.4 percent.

Question

Quizplus · Accepted Answer

According to historical data, the risk premium for small-company stocks averaged 13.9 percent during the period of 1926-2012. This means that, on average, small-company stocks provided a 13.9 percent higher return than risk-free investments such as treasury bills.

Based on the Period of 1926-2012,the Risk Premium for Small-Company