Question: Here are the historic returns for various asset classes. What has been the market risk premium? N I/YR PV PMT FV Small Stocks 89 12.17

Here are the historic returns for various asset classes. What has been the "market risk premium"?

N

I/YR

PV

PMT

FV

Small Stocks

89

12.17

-$1.00

0.00

$27,419.32

Large Stocks (S&P500)

89

10.12

-$1.00

0.00

$5,316.85

LT Govt Bonds

89

5.67

-$1.00

0.00

$135.18

T-Bills

89

3.47

-$1.00

0.00

$20.58

Inflation

89

2.93

-$1.00

0.00

$13.10

Select one:

a. 5.0% to 7.0%

b. More than 9.0%

c. 7.0% to 9.0%

d. Less than 3%

e. 3.0% to 5.0%

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