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The total annual returns on large company common stocks averaged 12.3% from 1926 to 2008, small company stocks averaged 17.2%, long-term government bonds averaged 5.6%,
The total annual returns on large company common stocks averaged 12.3% from 1926 to 2008, small company stocks averaged 17.2%, long-term government bonds averaged 5.6%, while Treasury Bills averaged 3.8%. What was the average risk premium earned by long-term government bonds, and small company stocks respectively?
A | 1.8%; 13.4% |
B | 2.0%; 13.6% |
C | 4.4%; 11.9% |
D | 9.5%; 1.8% |
E | None of the above |
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