On average,for the period 1926 through 2017:
A)the real rate of return on U.S.Treasury bills has been negative.
B)small-company stocks have underperformed large-company stocks.
C)long-term government bonds have produced higher returns than long-term corporate bonds.
D)the excess return on long-term corporate bonds has exceeded the excess return on long-term government bonds.
E)the excess return on large-company stocks has exceeded the excess return on small-company stocks.

Question

Quizplus · Accepted Answer

The excess return on long-term corporate bonds has historically exceeded the excess return on long-term government bonds due to the higher risk associated with corporate bonds, which typically offer higher yields to compensate for this increased risk.

On Average,for the Period 1926 Through 2017