During the onset of the Financial Crisis between 2007 and 2008, an investor would have earned the greatest return if he or she had invested in
A)only stocks
B)only Treasury bonds
C)a portfolio consisting of 50% stocks and 50% Treasury bonds
D)a non-interest bearing cash account
E)none of the above

Question

Quizplus · Accepted Answer

During the onset of the Financial Crisis between 2007 and 2008, stocks experienced significant losses and volatility. Treasury bonds, on the other hand, are considered a safe haven investment during times of economic uncertainty, and typically experience an increase in demand and price during such periods. Therefore, an investor who had invested solely in Treasury bonds would have earned the greatest return.

During the Onset of the Financial Crisis Between 2007 and 2008