Which of the Following Statements Are True Based on the Historical

Multiple Choice

Which of the following statements are true based on the historical record for 1926-2016?

A) Risk-free securities produce a positive real rate of return each year.
B) Bonds are generally a safer, or less risky, investment than are stocks.
C) Risk and potential reward are inversely related.
D) The normal distribution curve for large-company stocks is narrower than the curve for small-company stocks.
E) Returns are more predictable over the short term than they are over the long term.