When we review capital market history, we learned that: A. There will be rewarded for bearing risk On average, large company stock return is . lower than large company stock The greater the potential reward, the greater the C. risk Investor can make abnormal profit from public D. information in a long run from investment and dollar returns from investment of 2. are the capital securities. Dividend, capital gain A. B. Interest, dividend Income, capital gain All are incorrect C. D 3. Which of the following statement is/are correct? A. Risk premium is the extra return earned for taking on risk . Risk premium is the return over and above the risk-free rate C. The US Treasury bills are considered to have the lowest risk premium Both A & B D. is the return earned in an average is the 4. period over multiple periods. average compound return per period over multiple periods Geometric average, Arithmetic average Arithmetic average, Symmetric average Geometric average, Symmetric average Arithmetic average, Geometric average A. B. C. D. 5. Under the assumption of "Efficient Capital Market", Stock Prices are Always overvalued Always undervalued Fairly priced Either overvalued or undervalued A. B. C. D