Rank the Following from Highest Average Historical Return to Lowest

question 25

Multiple Choice

Rank the following from highest average historical return to lowest average historical return from 1926 to 2017.
I. Small stocks
II. Long-term bonds
III. Large stocks
IV. T-bills

• A) I, II, III, IV
• B) III, IV, II, I
• C) I, III, II, IV
• D) III, I, II, IV

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Definitions:

Liquidating a Partnership

The process of terminating a partnership by selling off assets, paying off creditors, and distributing the remaining assets to partners.

Divide Profits

The process of allocating earnings among shareholders, partners, or other stakeholders according to their ownership interests or agreement terms.

Remaining Cash

The amount of cash a business has after all expenses and distributions have been made.

Revaluation

The process of adjusting the book value of an asset to reflect its current market value.