Which of the Following Statements Concerning Historical Investment Risk and Return

question 4

Multiple Choice

Which of the following statements concerning historical investment risk and return is false?

• A) The geometric mean of the rates of return was always lower than the arithmetic mean of the rates of return.
• B) The rates of return on long-term US government bonds were lower than on stocks.
• C) Real estate investments consistently provide higher rates of return than those provided by common stock.
• D) Stocks and bonds experienced results in the middle of the art and antiques series.
• E) None of the above (that is, all are true statements).

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Definitions:

Human Motivation

The internal processes that initiate, guide, and maintain goal-oriented behaviors among humans.

Valence

In psychology, the intrinsic attractiveness or aversiveness of an event, object, or situation.

Expectancy

The belief or anticipation that a certain action will lead to a desired outcome, often related to motivation.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if possible, necessitating control and coercion by management.