Which One of the Following Statements Correctly Applies to the Period

question 65

Multiple Choice

Which one of the following statements correctly applies to the period 1926-2016?

• A) Large-company stocks earned a higher average risk premium than did small-company stocks.
• B) The average inflation rate exceeded the average return on U.S. Treasury bills.
• C) Large-company stocks had an average annual return of 14.7 percent.
• D) Inflation averaged 2.6 percent for the period.
• E) Long-term corporate bonds outperformed long-term government bonds.

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Definitions:

Soybeans

A leguminous plant originating from East Asia, extensively cultivated for its consumable beans that have various applications.

Alfalfa

Alfalfa is a perennial flowering plant often used as forage for livestock due to its high nutrient content and adaptability to various climates.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Import

The purchase of goods or services from foreign producers, bringing them into one's home country.