Which of the following statements is TRUE?
A)Small stocks have outperformed the S&P 500 in every year since 1925.
B)The S&P 500 is more volatile than corporate bonds.
C)Corporate bonds underperformed inflation during most years since 1925.
D)Treasury Bills outperformed inflation during every year since 1925.

Question

Quizplus · Accepted Answer

The S&P 500 is generally considered more volatile than corporate bonds because stocks in the index tend to be more heavily influenced by market trends and economic conditions, whereas corporate bonds are based on the financial health of individual companies. Small stocks have not outperformed the S&P 500 in every year since 1925, corporate bonds have not underperformed inflation during most years since 1925, and Treasury Bills have not outperformed inflation during every year since 1925.

Which of the Following Statements Is TRUE