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For the period 1926 to 2011, small-company stocks had a risk premium of 12.6 %. What does the term risk premium mean? Is the risk

For the period 1926 to 2011, small-company stocks had a risk premium of 12.6 %. What does the term risk premium mean? Is the risk premium on these stocks considered to be relatively high or relatively low as compared to other investment classes? Explain why?

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