If one were to rank different assets from highest to lowest the basis of average historical return, the ranking would be:
A) long-term corporate bonds, large company stocks, long term government bonds, US Treasury bills
B) large company stocks, long-term corporate bonds, long term government bonds, US Treasury bills
C) US Treasury bills, long term government bonds, long term corporate bonds, large company stocks
D) US Treasury bills, long term corporate bonds, long term government bonds, large company stocks

Question

Quizplus · Accepted Answer

According to historical data, large company stocks have had the highest average return, followed by long-term corporate bonds, long-term government bonds, and US Treasury bills. Therefore, option B correctly ranks these assets in order from highest to lowest average return.

If One Were to Rank Different Assets from Highest to Lowest