Which of the Following Statements Concerning Historical Investment Risk and Return

question 3

Multiple Choice

Which of the following statements concerning historical investment risk and return is false?

• A) The geometric mean of the rates of return was always lower than the arithmetic mean of the rates of return.
• B) The rates of return on long-term U.S. government bonds were lower than on stocks.
• C) Real estate investments consistently provide higher rates of return than those provided by common stock.
• D) Stocks and bonds experienced results in the middle of the art and antiques series.
• E) none of the above (that is, all are true statements)

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a stable market condition.

Equilibrium Quantity

The supply and demand for goods or services at the price point where equilibrium is achieved in a market.

Price

The measure of money anticipated, obligatory, or tendered in payment towards an item.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell.