Which of the Following Assets Had Both the Lowest Average

question 47

Multiple Choice

Which of the following assets had both the lowest average annual return and lowest risk between 1926 and 2015?

• A) small company stocks
• B) large company stocks
• C) long-term corporate bonds
• D) U.S. Treasury bills

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Definitions:

Identity Equation

An equation that is true for all values of the variable, typically used to express fundamental algebraic properties.

Solve

The process of finding an answer or solution, especially in mathematics by determining the value of variables.

Possible

That which can be done or achieved, within the realm of reality or probability.

Linear Equation

An equation between two variables that produces a straight line when plotted on a graph.