Capital market history shows us that the average return relationship from lowest to highest between securities is:
A)inflation, corporate bonds, Treasuries, small company stocks, large company stocks.
B)inflation, Treasury Bills, large company stocks, small company stocks.
C)Treasury bills, government bonds, large common stocks, corporate bonds, small company stocks.
D)Treasury bills, government bonds, large common stocks, corporate bonds, large company stocks.
E)There is no ordering.

Question

Quizplus · Accepted Answer

Historically, the average return from lowest to highest is: inflation, Treasury Bills, large company stocks, small company stocks. Treasury Bills have lower returns than stocks, and small company stocks typically have higher returns than large company stocks.

Capital Market History Shows Us That the Average Return Relationship