Which of the Following Classifications of Securities Had the Largest

question 30

Multiple Choice

Which of the following classifications of securities had the largest one-year return over the period 1950-1999?

• A)Small-company stocks
• B)Long-term government bonds
• C)3-month U.S.Treasury bills
• D)Large-company stocks

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Definitions:

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell.

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.

Disclosures

These are notes in financial statements that provide additional insight into the presented figures, accounting policies, and other relevant information.

Held to Maturity

A classification of debt securities that a company intends and is able to hold until they mature.