Question: Assume the average return on small-cap equities was 16.8% over the past 25 years. If the average risk free rate was 2.7% over that period,

Assume the average return on small-cap equities was 16.8% over the past 25 years. If the average risk free rate was 2.7% over that period, what is the historical risk premium for small-cap stocks? 11.10% 13.10% 12.10% 14.10% 9.10%

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