The total annual returns on Canadian common stocks averaged 11.10% from 1957 to 2006, Long-term bonds averaged 8.78%, while Treasury Bills averaged 6.57%.What was the average risk premium earned by long-term bonds, and common stocks respectively? Multiple Choice

8.5%; 1.5%

0; 12.2%

2.21%; 4.53%

1.5%; 7.0%

Answer rating: 100% (QA)

Risk premium earned on security is excess of return earned on security over risk free rate Risk fr... View the full answer