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Historical stock returns show that small - company stocks produced an average return of 1 7 . 4 percent, inflation averaged 3 . 1 percent,

Historical stock returns show that small-company stocks produced an average return of 17.4 percent, inflation averaged 3.1 percent, U.S. Treasury bills returned an average 3.8 percent, and long-term corporate bonds returned 6.2 percent. What was the risk premium on small-company stocks for that period?

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