Which one of the following had the highest risk premium for the period 1926-2018?
A)U.S. Treasury bills
B)long-term government bonds
C)large-company stocks
D)small-company stocks
E)intermediate-term government bonds

Question

Quizplus · Accepted Answer

Small-company stocks had the highest risk premium for the period 1926-2018, with an average annualized return of 11.4% and a standard deviation of 32.5%, resulting in a risk premium of approximately 8.8%.

Which One of the Following Had the Highest Risk Premium