Question: Given the information found in the table below, the historical risk premium for small company stocks is U.S. Treasury Bills are currently yielding a
Given the information found in the table below, the historical risk premium for small company stocks is U.S. Treasury Bills are currently yielding a 1.4% rate of return. Historical Returns and Standard Deviations. 1926-2019 Series Large-company stocks Small-company stocks Long-term government bonds Average Annual Return U.S. Treasury bills 13.8% Long-term corporate bonds 4.4% 18.5% 3.1% 2.6% Standard Deviation 24.2% 37.3% 10.3% 8.7% 2.9% _%, and the current expected rate of return for small company stocks is %. Assume that
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