Which One of the Following Accurately Orders the Rate of Return

question 7

Multiple Choice

Which one of the following accurately orders the rate of return on financial securities from highest to lowest over most of recorded market history (the 1900-2010 period) ?

• A) Short-term government bills, long-term corporate bonds, long-term government bonds, common stocks
• B) Long-term corporate bonds, long-term government bonds, common stocks, short-term government bills
• C) Common stocks, long-term government bonds, long-term corporate bonds, short-term government bills
• D) Common stocks, long-term corporate bonds, long-term government bonds, short-term government bills
• E) Long-term corporate bonds, common stocks, short-term government bills, long-term government bonds
• F) None of the above.

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Definitions:

Economic System

A structured and organized way in which a society decides on the distribution of resources, goods, and services.

Social System

A structure of interrelated institutions, organizations, and patterns of interactions that defines a society.

Presidential Democracy

A system of government where a president serves as the head of state and head of government, often in a system separate from the legislative branch.

Egalitarianism

A philosophy advocating for equal rights and opportunities for all individuals, emphasizing the importance of equality in social, political, and economic spheres.