The Average Risk Premium on Large-Company Stocks for the Period

question 80

Multiple Choice

The average risk premium on large-company stocks for the period 1926-2009 was:

• A) 6.7 percent.
• B) 7.9 percent.
• C) 8.5 percent.
• D) 12.3 percent.
• E) 13.6 percent.

---

Definitions:

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating corporate behavior and ensuring fair competition.

Price Discount

A reduction from the original or listed price of a good or service to encourage purchase.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of consumers, typically based on factors like age, location, or purchasing history.