The Total Annual Returns on Common Stocks Averaged 13

question 6

Multiple Choice

The total annual returns on common stocks averaged 13.3% from 1957 to 2003. Small company stocks averaged 10.64%, long-term bonds averaged 8.96%, while Treasury Bills averaged 6.8%. What was the average risk premium earned by long-term Bonds, and small company stocks respectively?

• A) 9.5%; 1.8%
• B) 4.4%; 11.9%
• C) 2.16%; 3.84%
• D) 1.8%; 13.3%

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Definitions:

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Substances that are believed to cause an allergic reaction in certain individuals.

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Allergic reactions that are triggered by specific allergens, which can vary greatly among individuals.

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Cells exhibiting atypical structure or behavior, often indicative of disease processes such as cancer.

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