The total annual returns on large company common stocks averaged 12.3% from 1926 to 2008, small company stocks averaged 17.4%, long-term government bonds averaged 5.8%, while Treasury Bills averaged 3.8%.What was the average risk premium earned by long-term government bonds, and small company stocks respectively?
A) 1.8%; 13.3%
B) 2.0%; 13.6%
C) 4.4%; 11.9%
D) 9.5%; 1.8%
E) None of the above
Correct Answer:
Verified
Q57: Over the past five years,a stock produced
Q61: The returns on your portfolio over the
Q62: You have a sample of returns observations
Q62: The market portfolio of common stocks earned
Q65: Suppose you own a risky asset with
Q71: Kids Toy Co. has had total returns
Q75: What are the lessons learned from capital
Q80: The returns on your portfolio over the
Q81: Little John Industries sold for $1.90 on
Q82: You earned a total return of -5%
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents