Given the information found in the table below, the historical risk premium for small company stocks is ____%, and the current expected rate of return for small company stocks is ____%. Assume that U.S. Treasury Bills are currently yielding a 1.4% rate of return.
Historical Returns and Standard Deviations. 1926-2019
Series Average Annual Return Standard Deviation
Large-company stocks 13.8% 24.2%
Small-company stocks 18.5% 37.3%
Long-term corporate bonds 4.4% 10.3%
Long-term government bonds 3.1% 8.7%
U.S. Treasury bills 2.6% 2.9%
18.5%; 19.9%
15.9%; 18.5%
18.5%; 21.1%
15.9%; 17.3%
None of the above are correct.