What was the average annual rate of return on common stocks of small firms during the period 1926 to 2011?

Question

Quizplus · Accepted Answer

This figure comes from the analysis of data by the Center for Research in Security Prices (CRSP) at the University of Chicago. The data covers the period from 1926 to 2011 and includes annual returns of small firms that are part of the CRSP database. While the annual rate of return on small stocks can be volatile and subject to a degree of uncertainty, the 11.9% average annual rate of return is considered to be a reliable estimate based on a long history of data.

What Was the Average Annual Rate of Return on Common