Which One of the Following Statements Is Correct Based on the Historical

question 32

Multiple Choice

Which one of the following statements is correct based on the historical returns for the period 1926-2016?

• A) For the period, Treasury bills yielded a higher rate of return than long-term government bonds.
• B) The inflation rate exceeded the rate of return on Treasury bills during some years.
• C) Small-company stocks outperformed large-company stocks every year during the period.
• D) Bond prices, in general, were more volatile than stock prices.
• E) For the period, large-company stocks outperformed small-company stocks.

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