The rate of return on ________ is known at the beginning of the holding period while the rate of return on ________ is not known until the end of the holding period.
A)risky assets, Treasury notes
B)Treasury notes, risky assets
C)excess returns, risky assets
D)index assets, bonds

Question

Quizplus · Accepted Answer

Treasury notes are considered low-risk investments with known rates of return at the beginning of the holding period. In contrast, risky assets such as stocks or real estate have unpredictable rates of return that can only be evaluated at the end of the holding period.

The Rate of Return on ________ Is Known at the Beginning