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:

Production Technique

The method or procedure involved in converting raw materials into finished goods or products.

Price of Labor

Price of Labor refers to the wages or salary paid to workers for their labor or services.

Price of Capital

The expense involved in using capital goods, often involving interest rates or rental costs for financial or physical capital.

Perfectly Competitive Market

A theoretical market structure characterized by a large number of buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to price takers rather than price makers.