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The total annual returns on large company common stocks averaged 12.3% from 1926 to 2011, small company stocks averaged 17.4%, long-term government bonds averaged 5.8%, while Treasury Bills averaged 3.8%. What was the average risk premium earned by long-term government bonds, and small company stocks respectively? A. 1.8%; 13.3% B. 2.0%; 13.6% C. 4.4%; 11.9% D. 9.5%; 1.8% E. None of these

Financial Management, Finance

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