Which of the following statements is supported by the empirical data presented in this chapter?
A)Returns on cash assets tended to be uncorrelated with the returns on stocks.
B)Returns on stocks and bonds tended to have a high positive correlation
C)In every year, stocks offered a higher rate of return than an investment in cash assets, but in some years, bond investments offered a higher rate of return than stocks.
D)A positive average annual rate of return always translated into a positive compound holding period rate of return.

Question

Which of the following statements is supported by the empirical data presented in this chapter?
A)Returns on cash assets tended to be uncorrelated with the returns on stocks. 
B)Returns on stocks and bonds tended to have a high positive correlation 
C)In every year, stocks offered a higher rate of return than an investment in cash assets, but in some years, bond investments offered a higher rate of return than stocks. 
D)A positive average annual rate of return always translated into a positive compound holding period rate of return.

Quizplus · Accepted Answer

The empirical data presented in this chapter shows that returns on cash assets tended to be uncorrelated with the returns on stocks.

Which of the Following Statements Is Supported by the Empirical