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Over a certain period, large-company stocks had an average return of 12.99 percent, the average risk-free rate was 2.66 percent, and small-company stocks averaged 17.77

Over a certain period, large-company stocks had an average return of 12.99 percent, the average risk-free rate was 2.66 percent, and small-company stocks averaged 17.77 percent. What was the risk premium on small-company stocks for this period?

Multiple Choice

  • 4.78%
  • 20.43%
  • 15.11%
  • 10.33%

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