Which portfolio has had the lowest average annual nominal rate of return during the 1900-2017 periods?
A)Portfolio of small U.S. common stocks
B)Portfolio of U.S. government bonds
C)Portfolio of Treasury bills
D)Portfolio of large U.S. common stocks

Question

Quizplus · Accepted Answer

The portfolio of Treasury bills has had the lowest average annual nominal rate of return during the 1900-2017 period. Treasury bills are considered one of the most conservative investments, with very low risk but also very low returns. Therefore, they are not expected to have high average returns compared to other investments such as stocks or bonds.

Which Portfolio Has Had the Lowest Average Annual Nominal Rate