Question 20\

0.5pts

\ The historical annual average return of small stocks was

16.5%

, and the historical annual risk free rate was

3.4%

for the same period. The historical risk premium of small stocks is for that period, and if the current risk free rate is

1%

, a sensible required return for a small stock portfolio right now should be\

13.1%;14.1%

\

13.1%;16.5%

\

15.5%;14.1%

\

15.5%;16.5%

The historical annual average return of small stocks was 16.5%, and the historical annual risk free rate was 3.4% for the same period. The historical risk premium of small stocks is for that period, and if the current risk free rate is 1%, a sensible required return for a small stock portfolio right now should be 13.1%;14.1% 13.1%;16.5% 15.5%;14.1% 15.5%;16.5%