The historical record for the period 1926-2016 supports which one of the following statements?

Question

Quizplus · Accepted Answer

The statement that "Small-company stocks have lost as much as 50 percent and gained as much as 100 percent in a single year" is supported by the historical record for the period 1926-2016, whereas the other statements are not necessarily true based on the historical record. For example, large-company stocks may have negative returns for only one year, and there were multiple years with double-digit inflation. The return on U.S. Treasury bills may not always exceed the inflation rate by at least .5 percent each year, and the inflation rate was not necessarily positive each year throughout the period.

The Historical Record for the Period 1926-2016 Supports Which One