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Use the following historical average returns and standard deviations to answer the question below. Asset Canadian common stocks US common stocks Long bonds Small-company stocks

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Use the following historical average returns and standard deviations to answer the question below. Asset Canadian common stocks US common stocks Long bonds Small-company stocks Treasury bills Average 13.20% 15.59% 7.64% 14.79% 6.04% Return Standard Deviation 16.62% 16.86% 10.57% 23.68% 4.04% What is the historical risk premium on Canadian common stocks? Multiple Choice 8.75% 7.16% 1.60% 0% 9.55%

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