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Given the following historical average returns on different US investments, tell me the historical risk premium on US large-capitalization stocks. Small-Capitalization Stocks 14.5% Large-Capitalization Stocks

Given the following historical average returns on different US investments, tell me the historical risk premium on US large-capitalization stocks. Small-Capitalization Stocks 14.5% Large-Capitalization Stocks 12.9% High-Yield Corp. Bonds 6.5% L-T Corp. Bonds 5.6% L-T Govt. Bonds 5.2% Municipal Bonds 4.2% Inflation 2.0% U.S. Treasury Bills 1.5%

A.

10.9%.

B.

11.4%.

C.

9.4%.

D.

17%.

E.

5.6%.

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