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For the period 1926-2008, small-company stocks had a risk premium of 12.6 percent. What does the term risk premium mean? Is the risk premium on

For the period 1926-2008, small-company stocks had a risk premium of 12.6 percent. What does the term "risk premium" mean? Is the risk premium on these stocks considered to be relatively high or relative low as compared to other investment classes? Explain why.

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