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Which rate of return in the popup table, is the risk-free rate? Why? Which rate of return in the table is the risk-free rate? (Select

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Which rate of return in the popup table, is the risk-free rate? Why? Which rate of return in the table is the risk-free rate? (Select the best choice below.) A. 3.7% B. 17.4% C. 6.2% D. 5.2% O E. 11.7% (Select from the drop-down Treasury bills are risk-free assets because they have a short-term maturity date, their price is less volatile, and there is no chance of default on them. menu.) Which rate of return in the popup table, is the risk-free rate? Why? Which rate of return in the table is the risk-free rate? (Select the best choice below. i O A. 3.7% X Data Table B. 17.4% C. 6.2% (Click on the following icon in order to copy its contents into a spreadsheet.) D. 5.2% O E. 11.7% Risk Premium 8.0% 13.7% Select from the drop-down Treasury bills are risk-free ass menu.) Nominal Average Standard Deviation Real Average Annual Securities Annual Returns of Returns Returns (*) Large-company stocks 11.7% 20.0% 8.5% Small-company stocks 17.4% 33.0% 14.2% Corporate bonds 6.2% 8.5% 3.0% Government bonds 5.2% 5.7% 2.0% U.S. Treasury bills 3.7% 3.1% 0.5% Inflation 3.2% 4.3% (*) The real return equals the nominal returns less the inflation rate of 3.2 percent. 2.5% 1.5% 0.0% Print Done

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