Which of the following is correct?
A)Over a long time frame, stocks have performed better than long-term Treasury bonds.
B)Average stock returns are not an indication of what an investor may earn in any one year.
C)In some years, long-term Treasury bonds performed better than stocks.
D)All of these statements are correct.

Question

Quizplus · Accepted Answer

All of these statements are correct.

A is true as historically, stocks have had higher average returns than long-term Treasury bonds over extended periods of time.

B is also true as stock returns can be volatile and unpredictable in the short-term, so actual returns in any given year can vary significantly from the long-term average.

C is true as there have been some years where long-term Treasury bonds have outperformed stocks, particularly during times of economic uncertainty or market volatility.

Which of the Following Is Correct