Assume a 20-Year Period Produced Small-Company Returns of 16

question 14

Multiple Choice

Assume a 20-year period produced small-company returns of 16.7 percent with a risk premium of 9.8 percent,inflation of 5.4 percent,and long-term government bond returns of 10.1 percent.What was the risk-free rate of return during this period?

• A)4)7%
• B)6)6%
• C)11.3%
• D)6)9%
• E)4)4%