During the last two centuries, after adjustment for inflation,
A) corporate bonds have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for corporate stocks.
B) corporate stocks have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for bonds.
C) both corporate stocks and bonds have yielded a real rate of return of about 3 percent.
D) both corporate stocks and bonds have yielded a real rate of return of about 7 percent.

Question

Quizplus · Accepted Answer

Historically, corporate stocks have provided higher real returns than bonds, averaging around 7% annually, while bonds have yielded about 3% after adjusting for inflation.

During the Last Two Centuries, After Adjustment for Inflation