Question: Consider the following average annual returns: Investment Average Return Small Stocks 23.9% S&P 500 13.2% Corporate Bonds 7.9% Treasure Bonds 6.5% Treasury Bills 4% What

Consider the following average annual returns:

Investment

Average Return

Small Stocks

23.9%

S&P 500

13.2%

Corporate Bonds

7.9%

Treasure Bonds

6.5%

Treasury Bills

4%

What is the excess return for corporate bonds?

A.

7.8%

B.

3.9%

C.

0%

D.

2%

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