Over the Past 90 Years, Which Financial Asset Class Has

question 2

Multiple Choice

Over the past 90 years, which financial asset class has produced the greatest number of superior 5-year return periods?

• A) Large-cap stocks
• B) Small-cap stocks
• C) Long-term corporate bonds
• D) Short-term corporate bonds

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Definitions:

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation.

Autonomous Consumption

Consumption expenditure that occurs when income levels are zero, reflecting basic survival expenses.

International Oil Price

The cost per barrel of crude oil on the global market, influenced by supply and demand, geopolitical events, and other factors.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a commodity or service, leading to increased prices and reduced output.