Based on the Period of 1926 Through 2012,which Category of Securities

question 4

Multiple Choice

Based on the period of 1926 through 2012,which category of securities has outperformed all of the other categories?

• A)Long-term corporate bonds
• B)U.S.Treasury bills
• C)Small-company stocks
• D)Large-company stocks
• E)Long-term government bonds

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Definitions:

Market

A venue or system where buyers and sellers engage in the exchange of goods, services, or financial instruments.

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount to be repaid at maturity.

Coupon Rate

The annual rate of interest specified on a bond, expressed as a percentage of its face value.

Annual Coupon

The yearly interest payment paid to bondholders, typically expressed as a percentage of the bond's face value.