Over a certain period, large-company stocks had an average return of 12.54 percent, the average risk-free rate was 2.57 percent, and small-company stocks averaged 17.41 percent. What was the risk premium on small-company stocks for this period?

Over a certain period, large-company stocks had an average return of 12.54 percent, the average risk-free rate was 2.57 percent, and small-company stocks averaged 17.41 percent. What was the risk premium on small-company stocks for this period?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 14P

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