The Fact That Over the Long Run the Return on Common

question 1

Multiple Choice

The fact that over the long run the return on common stocks has been higher than that on long-term U.S. Treasury bonds is partially explained by the fact that:

• A) A lot more money is invested in common stocks than U.S. Treasury bonds.
• B) There are regulations on the interest rates U.S. Treasury bonds can offer.
• C) The risk premium is higher on common stocks.
• D) Risk-averse investors buy more common stock.

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Definitions:

Occipital

Pertaining to the occiput, the posterior portion of the skull or the back of the head.

Temporal

Temporal refers to anything related to time or the temporal lobe in the brain, which is involved in processing auditory information and encoding memory.

Maxilla

The upper jawbone, responsible for forming the upper dental arch.

Sinus

Hollow in a bone or other tissue; enlarged channel for blood or lymph.