Multiple Choice
Which one of the following statements is correct based on the historical returns for the period 1926-2012?
A) For the period, Treasury bills yielded a higher rate of return than long-term government bonds.
B) The inflation rate exceeded the rate of return on Treasury bills during some years.
C) Small-company stocks outperformed large-company stocks every year during the period.
D) Bond prices, in general, were more volatile than stock prices.
E) For the period, large-company stocks outperformed small-company stocks.
Correct Answer:

Verified
Correct Answer:
Verified
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