On Average,for the Period 1926 Through 2012

question 8

Multiple Choice

On average,for the period 1926 through 2012:

• A)the real rate of return on U.S.Treasury bills has been negative.
• B)small-company stocks have underperformed large-company stocks.
• C)the risk premium on long-term corporate bonds has exceeded the risk premium on long-term government bonds.
• D)intermediate-term government bonds have produced higher returns than long-term government bonds.
• E)the risk premium on large-company stocks has exceeded the risk premium on small-company stocks.

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Definitions:

Cash Receipts

The collection of money (currency, checks, or electronic transfers) received by a business from its various sources.

Cash Payments

Transactions involving the transfer of cash from one entity to another, typically in exchange for goods or services.

Debit Balance

The amount that remains in a specific account after accounting for debits and credits, indicating the total debits exceed the total credits.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior, or for a chain of reasoning.