Rank the Following from Highest Average Historical Return to Lowest

question 60

Multiple Choice

Rank the following from highest average historical return to lowest average historical return from 1926-2008.
I.Small stocks
II.Long term bonds
III.Large stocks
IV.T-bills

• A) I, II, III, IV
• B) III, IV, II, I
• C) I, III, II, IV
• D) III, I, II, IV

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Interest Income

Income earned from investments, savings, or credit extended, such as interest on bonds, savings accounts, or loans provided to others.

Interest Accrued

The amount of interest that has been earned or incurred but has not yet been paid or received.

Note Paid

Represents the full repayment or settlement of the amount owed as denoted in a promissory note.