On Average, During the Past 75 Years, the Return on Long-Term

question 175

True/False

On average, during the past 75 years, the return on long-term government bonds has exceeded the return on long-term corporate bonds.

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Definitions:

Prefers

Indicates a choice or inclination for one option over others based on certain criteria or personal judgment.

Transitivity

In decision theory and economics, the concept that if option A is preferred to B, and B is preferred to C, then A should be preferred to C.

Kenneth Arrow

An influential economist known for his groundbreaking theories in risk, welfare economics, and his contribution to the general equilibrium theory.

Condorcet Paradox

The Condorcet Paradox describes a situation in voting theory where collective preferences can be cyclical, even if individual preferences are not, leading to a lack of clear majority preference.