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Consider the average rates of return for common stocks, govermment bonds and T-bilis for the period 1976-2007 Stocks Government Bonds 10 8% Treasury Bills

 

Consider the average rates of return for common stocks, govermment bonds and T-bilis for the period 1976-2007 Stocks Government Bonds 10 8% Treasury Bills 7.9% 131% What is the difference between the risk premium on stocks and the maturity premium on government bonds? 3.5 percent O 23 percent O 29 percent 52 percent O Undetermined

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