Which One of the Following Statements Correctly Applies to the Period

question 76

Multiple Choice

Which one of the following statements correctly applies to the period 1926-2010?

• A)Large-company stocks earned a higher average risk premium than did small-company stocks.
• B)Intermediate-term government bonds had a higher average return than long-term corporate bonds.
• C)Large-company stocks had an average annual return of 14.7 percent.
• D)Inflation averaged 2.6 percent for the period.
• E)U.S. Treasury bills had a positive average real rate of return.

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Definitions:

Amnesic

Pertaining to amnesia, a condition characterized by loss of memory, often due to brain injury, disease, or psychological trauma.

Phobic

Exhibiting or pertaining to an extreme or irrational fear or aversion to a specific object, situation, or activity.

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a way to manage anxiety.

Agoraphobia

is an anxiety disorder characterized by intense fear of places or situations where escape might be difficult or help might not be available, often leading to avoidance behaviors.