e. Large-company stocks 12. The security considered as "risk-free", is considered to be free of a. b. c. d. e. Default risk only Default risk and interest rate risk Default risk and translation risk Government risk Congressional risk 13. Don Gump earned a 4.5 percent nominal rate of return on his investments for the past year. During that time, the risk-free rate was 4.1 percent and the inflation rate was 2.3 percent. What was his real rate of return? a. 2.15 percent b. 3.83 percent c. 4.47 percent d. 6.67 percent e. 6.91 percent 14. The risk premium for large company stocks for the period from 1926 through 2014 was a. b. c. d. e. 12.1% 16.7 % 8.6% 13.2% 6.4%