Based on Historical Performance,which One of the Following Investments Is

question 35

Multiple Choice

Based on historical performance,which one of the following investments is most likely to provide an average return of 10 percent a year between now and the year 2025?

• A)U)S.Treasury bills
• B)Corporate bonds
• C)Stocks
• D)Options
• E)Zero-coupon bonds

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Definitions:

Coupon

The interest rate paid by fixed-income securities, typically expressed as an annual percentage of the face value.

Selling For

The process or act of offering goods or services in exchange for money.

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.