The geometric mean return on large-company stocks for the


1. The geometric mean return on large-company stocks for the 1926-2015 period:

A. is approximately equal to the arithmetic mean return plus one-half of the standard deviation.

B. exceeds the arithmetic mean return.

C. is approximately equal to the arithmetic mean return minus one-half of the standard deviation.

D. is approximately equal to the arithmetic mean return plus one-half of the variance.

E. is less than the arithmetic mean return.

2. The additional return earned for accepting risk is called the:

A. inflated return.

B. capital gains yield.

C. real return.

D. riskless rate.

E. risk premium.

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Financial Management: The geometric mean return on large-company stocks for the
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