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1. 2. Over a certain period, large-company stocks had an average return of 12.34 percent, the average risk-free rate was 2.53 percent, and small-company stocks

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Over a certain period, large-company stocks had an average return of 12.34 percent, the average risk-free rate was 2.53 percent, and small-company stocks averaged 17.25 percent. What was the risk premium on small-company stocks for this period? Multiple Choice 4.91% 14.72% 11.78% 19.78% 9.81% A stock had returns of 17.78 percent, -5.10 percent, 20.33 percent, and 8.57 percent for the past four years. What is the variance of the returns? Multiple Choice .01587 .00615 .11499 .01322 .01763

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