Which of the following statements are true based on the historical record for 1926-2010?
I.Risk and potential reward are inversely related.
II.Risk-free securities produce a positive real rate of return each year.
III.Returns are more predictable over the short-term than they are over the long-term.
IV.Bonds are generally a safer investment than are stocks.

Question

Quizplus · Accepted Answer

Bonds are generally considered safer than stocks because they typically have lower volatility and provide fixed interest payments, whereas stocks can be more volatile and unpredictable.

Which of the Following Statements Are True Based on the Historical