Which of the following statements regarding returns from 1938 to 2007 is true?
A) Most investments underperformed inflation over that time period.
B) Treasury bills outperformed the CPI by less than 1%.
C) Bonds outperformed stocks during this period.
D) Canadian common stocks returns were greater than the standard deviation.

Question

Quizplus · Accepted Answer

Treasury bills historically have had a small but positive real return over inflation, which is represented by the Consumer Price Index (CPI). This means that on average, they outperform the CPI, but typically by a narrow margin, making statement B correct.

Which of the Following Statements Regarding Returns from 1938 to 2007