Final answer:
Without the precise historical data or a reliable source, the average risk premium for the market from 1926 to 2009 cannot be provided. However, the risk premium is the excess return over the risk-free.
Step-by-step explanation:
The average risk premium for the market from 1926 to 2009 is not explicitly provided within the provided information. However, it's important to understand the concept.
The risk premium refers to the return in excess of the risk-free rate of return (such as Treasury rates) that investors expect to receive for choosing to invest in a riskier asset class.
The risk premium compensates investors for taking on the higher risk of investing in the stock market rather than risk-free securities.In the context of investments.
Over a long period, due to the varying levels of risk associated with each type of investment. The higher the risk, the higher the potential return needs to be to attract investors.
If we were to look at the historical data for the period specified, various sources may have different calculations for the average market risk-premium.
However, without the precise historical data or a reliable source available, we can't accurately provide the average risk-premium from 1926 to 2009.