Over the past ten years,large-company stocks have returned an average of 10.4 percent annually,long-term corporate bonds have earned 4.6 percent,and U.S.Treasury bills have returned 3.2 percent.How much additional risk premium would you have earned if you had invested in large-company stocks rather than long-term corporate bonds over those ten years?
A) 1.7 percent
B) 3.7 percent
C) 5.2 percent
D) 5.8 percent
E) 8.1 percent
Correct Answer:
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