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Given the following historical average returns on different US investments, tell me the historical risk premium on US long-term corporate bonds. Small Stocks 11.9% Large
Given the following historical average returns on different US investments, tell me the historical risk premium on US long-term corporate bonds.
Small Stocks 11.9% | Large Stocks 9.8% |
High-Yield Corp. Bonds 6.8% | L-T Corp. Bonds 5.9% |
L-T Govt. Bonds 5.4% | Municipal Bonds 4.4% |
U.S. Treasury Bills 3.7% | Inflation 3.0% |
Choose the correct answer:
A. | 1.1% | |
B. | 2.1% | |
C. | 2.2% | |
D. | 5.1% | |
E. | 6.0% | |
F. | 6.1% | |
G. | 6.5% | |
H. | 6.8% | |
I. | 7.5% | |
J. | 8.2% | |
K. | 8.9% | |
L. | No, none of the above is correct. |
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