Which portfolio had the highest average annual return in real terms between 1900 and 2014?
A)Portfolio of U.S.common stocks
B)Portfolio of U.S.government bonds
C)Portfolio of Treasury bills
D)None of the answers

Question

Quizplus · Accepted Answer

According to historical data, the portfolio of U.S. common stocks had the highest average annual return in real terms between 1900 and 2014, at around 6.5%. The portfolio of U.S. government bonds had an average annual return of around 2.5%, while the portfolio of Treasury bills had an average annual return of around 0.8%. Therefore, portfolio A is the best choice.

Which Portfolio Had the Highest Average Annual Return in Real