Multiple Choice
Assume that over the last several decades,the total annual returns on large-company common stocks averaged 12.1 percent,small-company stocks averaged 16.5 percent,long-term government bonds averaged 6 percent,and U.S.T-bills averaged 3.4 percent.What was the average excess return earned by long-term government bonds,and small-company stocks respectively?
A) 1.8 percent; 13.3 percent
B) 2.6 percent; 13.1 percent
C) 2.6 percent; 4.4 percent
D) 1.9 percent; 5.1 percent
E) 4.4 percent; 2.6 percent
Correct Answer:
Verified
Correct Answer:
Verified
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