Figure 13.1 in your textbook compares the returns on various investments over the period 1951-2010.Which of the following is shown to exceed the inflation rate by the widest margin?

Question

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Figure 13.1 shows that the returns on common stocks exceeded the inflation rate by the widest margin during the period of 1951-2010, with an average annual return of 10.4% compared to an inflation rate of 3.5%. Government bonds, Treasury bills, and mutual funds all had lower average annual returns than common stocks and did not exceed the inflation rate by as wide a margin.

Figure 131 in Your Textbook Compares the Returns on Various Investments