Over the long term, which one of the following has historically had the lowest risk and lowest average annual rate of return?
A) U.S. common stock
B) long-term government bonds
C) short-term government bills
D) German common stock

Question

Quizplus · Accepted Answer

Short-term government bills have historically had the lowest risk and lowest average annual rate of return compared to U.S. common stock, long-term government bonds, and German common stock. This is because they are backed by the government and have a short duration, reducing exposure to interest rate changes and other market risks.

Over the Long Term, Which One of the Following Has