Which one of the following statements is true regarding the period 1926-2011?
A) The returns on small-company stocks were less volatile than the returns on large-company stocks.
B) The risk-free rate of return remained constant over the time period.
C) U.S. Treasury bills had a positive average real rate of return.
D) Bonds had an average rate of return that exceeded the average return on stocks.
E) The inflation rate was just as volatile as the return on long-term bonds.
Correct Answer:
Verified
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