On average which of the following is false concerning total returns for major financial assets, 1938 to 2007?
A) US common Stocks have higher returns than Canadian stocks.
B) Canadian common stocks have higher returns than long-term Government of Canada bonds.
C) The return on 91-Day Government of Canada T-bills has consistently been less than inflation.
D) Long-term Government of Canada bonds have higher rates than short-term issues.

Question

Quizplus · Accepted Answer

The statement that the return on 91-Day Government of Canada T-bills has consistently been less than inflation is false. Typically, short-term government securities like T-bills are designed to offer returns that can keep pace with or exceed inflation over time, although there can be periods where this is not the case.

On Average Which of the Following Is False Concerning Total