Which of the Following Investment Strategies Would Have Produced the Highest

question 57

Multiple Choice

Which of the following investment strategies would have produced the highest returns in the time period since 1926?

• A) T bills portfolio
• B) S&P 500 index fund
• C) Perfect market timing
• D) Random stock selection

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Definitions:

Departmental Income Statements

Financial statements that show the operating results of each department within a company, highlighting revenues and expenses.

Profit Center

A branch or division of a business that is responsible for generating its own revenue and profit.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs.

Indirect Expenses

Expenses that cannot be traced directly to one department.