Question: Over a certain period, large-company stocks had an average return of 12.29 percent, the average risk-free rate 2.52 percent, and small-company stocks averaged 17.21 percent.

Over a certain period, large-company stocks had an average return of 12.29 percent, the average risk-free rate 2.52 percent, and small-company stocks averaged 17.21 percent. What was the risk premium on small-company stocks for the period?

9.77%

4.92%

14.69%

19.73%

11.75%

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