The historical arithmetic rate of return on U.S.small stocks over the 1926-2009 period has been _______.The standard deviation of small stocks' returns has been ________ than the standard deviation of large stocks' returns.
A)12.43%, lower
B)13.11%, lower
C)16.24%, higher
D)17.43%, higher
E)21.53%,higher

Question

Quizplus · Accepted Answer

The historical arithmetic rate of return on U.S. small stocks over the 1926-2009 period has been 17.43%, and the standard deviation of small stocks' returns has been higher than that of large stocks, reflecting their greater volatility.

The Historical Arithmetic Rate of Return on U