Which One of the Following Statements Is True Regarding the Period

question 68

Multiple Choice

Which one of the following statements is true regarding the period 1926-2008?

• A) The returns on small-company stocks were less volatile than the returns on large-company stocks.
• B) The risk-free rate of return remained constant over the time period.
• C) U.S. Treasury bills had a positive average real rate of return.
• D) Bonds had an average rate of return that exceeded the average return on stocks.
• E) The inflation rate was just as volatile as the return on long-term bonds.

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