Which One of the Following Statements Correctly Applies to the Period

question 76

Multiple Choice

Which one of the following statements correctly applies to the period 1926-2010?

• A)Large-company stocks earned a higher average risk premium than did small-company stocks.
• B)Intermediate-term government bonds had a higher average return than long-term corporate bonds.
• C)Large-company stocks had an average annual return of 14.7 percent.
• D)Inflation averaged 2.6 percent for the period.
• E)U.S. Treasury bills had a positive average real rate of return.

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