Over the Period of 1926 Through 2017,the Annual Rate of Return

question 13

Multiple Choice

Over the period of 1926 through 2017,the annual rate of return on ________ has been more volatile than the annual rate of return on ________.

• A)large-company stocks; small-company stocks
• B)U.S.Treasury bills; small-company stocks
• C)U.S.Treasury bills; long-term government bonds
• D)long-term corporate bonds; small-company stocks
• E)large-company stocks; long-term corporate bonds

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Definitions:

Purchases Discount

A reduction in the invoice price of goods, granted by the seller to the buyer for early payment within a specified time frame.

Gross Method

An accounting method for recording inventory purchases without deducting discounts at the time of purchase.

Periodic Inventory System

An inventory system that, at the end of each accounting period, calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.

Merchandise

Goods or products that a retailer buys to sell to consumers, especially in the context of physical goods stocked in a store.