The Total Annual Returns on Large Company Common Stocks Averaged

question 46

Multiple Choice

The total annual returns on large company common stocks averaged 11.8% from 1926 to 2009 small company stocks averaged 16.6%,long-term government bonds averaged 5.8%,while Treasury Bills averaged 3.7%.What was the average risk premium earned by long-term government bonds and small company stocks,respectively?

• A)1.8%; 11.9%
• B)2.1%; 12.9%
• C)4.4%; 13.9%
• D)9.5%; 1.8%
• E)None of the above.

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Definitions:

Psychobiological

Relating to the biological underpinnings of psychological phenomena, emphasizing the interaction between biological processes and behavior.

Humanistic

Relating to an approach in psychology that emphasizes individual worth, personal growth, and the concept of self-actualization.

Phobic Disorder

An anxiety disorder characterized by an intense and irrational fear of specific objects, activities, or situations.

Panic Disorder

A psychiatric disorder characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.