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Please explain. Thank you in advance Which of the following is true about the risk premium? The risk premium has been higher for stocks than

image text in transcribedPlease explain. Thank you in advance

Which of the following is true about the risk premium? The risk premium has been higher for stocks than bonds in the US and Canadian Market historically ii) The risk premium would be unchanged if geometric or arithmetic returns were used to calculate it iii) The risk premium directly measures how stocks perform relative to inflation. iv) Assuming an asset's return stays constant, its risk premium is negatively related to the yield on T-bills ) i, iv b) i, ii c), iv d) None of the above

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