Justify the Historic Ranking of Returns for the Following Three

question 56

Essay

Justify the historic ranking of returns for the following three categories of investment, listed from highest to lowest return: common stocks, long-term Treasury bonds, and Treasury bills.

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Definitions:

Productive Investments

Investments channeled towards the enhancement of production capabilities, technological advancements, or efficiency improvements in an economy.

British Pound

The currency of the United Kingdom, known officially as the pound sterling, and recognized by its symbol £.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economic growth and balance of trade.

Imports

Goods and services bought by a country from another country.