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.