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:

Tariffs

A tax imposed by a government on goods and services imported from other countries, affecting the price and availability of those items.

Foreign-Produced Automobiles

Cars and other types of vehicles that are manufactured outside of a country's borders and then imported for sale.

Domestic Price

The price of goods or services within a country's borders, exclusive of any tariffs, export fees, or import costs.

Tariff

A tax imposed on imported goods and services, aimed at making these goods costlier and protecting domestic industries.