If you were required to estimate the average return for one category of securities for the coming year,history tells us that you should have the greatest degree of confidence estimating which of the following?
A)Long-term government bonds
B)3-month U.S.Treasury bills
C)Small-company stocks
D)Large-company stocks

Question

Quizplus · Accepted Answer

3-month U.S. Treasury bills are typically considered the safest investment option and have the lowest volatility compared to the other options listed. Their returns are more predictable and stable, which means that historical data can provide a more accurate estimate of future returns. Additionally, because they are government-backed and have a short duration, they are less susceptible to interest rate fluctuations and credit risks.

If You Were Required to Estimate the Average Return for One