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

question 60

Multiple Choice

Which one of the following statements is correct based on the historical returns for the period 1926-2012?

• 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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Definitions:

Encode

The process of converting information into a particular form or code, especially in the context of memory or communication.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Recall

The cognitive action of retrieving information or memories from the past.

County Seats

The administrative centers or capitals of counties, typically housing government offices and courthouses.