Which one of the following categories of securities had the highest average annual return for the period 1926-2016?
A) U.S. Treasury bills
B) Large-company stocks
C) Small-company stocks
D) Long-term corporate bonds
E) Long-term government bonds

Question

Quizplus · Accepted Answer

Small-company stocks have historically provided the highest average annual returns over long periods, outperforming other categories like large-company stocks, government and corporate bonds, and treasury bills. This is attributed to the higher risk associated with investing in small companies, which demands a higher return.

Which One of the Following Categories of Securities Had the Highest