Which One of the Following Accurately Orders the Rate of Return

question 3

Multiple Choice

Which one of the following accurately orders the rate of return on financial securities from highest to lowest over most of recorded market history (the 1928-2013 period) ?

• A) Short-term government bills,long-term corporate bonds,long-term government bonds,common stocks
• B) Long-term corporate bonds,long-term government bonds,common stocks,short-term government bills
• C) Common stocks,long-term government bonds,long-term corporate bonds,short-term government bills
• D) Common stocks,long-term corporate bonds,long-term government bonds,short-term government bills
• E) Long-term corporate bonds,common stocks,short-term government bills,long-term government bonds

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total expenses, resulting in no profit or loss for the business.