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Over the Period 1925-2012,stocks Outperformed Bonds by a Wide Margin

Question 32

Multiple Choice

Over the period 1925-2012,stocks outperformed bonds by a wide margin.What conclusion should you draw from this performance?


A) Stocks will have a higher rate of return than bonds in any given year.
B) Investors should only purchase stocks.
C) Any stock you select will outperform a bond over the long-term.
D) On an annual basis,stock returns will exceed the rate of inflation but bond returns may or may not.
E) Stocks are riskier than bonds.

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