The historical record for the period 1926-2010 supports which one of the following statements?
A) A higher-risk security will provide a higher rate of return next year than will a lower-risk security.
B) If you need a stated amount of money next year, your best investment option today for those funds would be long-term government bonds.
C) Increased long-run potential returns are obtained by lowering risks.
D) It is possible for small-company stocks to more than double in value in any one given year.
E) Inflation was positive each year throughout the period of 1926-2010.
Correct Answer:
Verified
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