Rank the following from highest average historical return to lowest average historical return from 1926-2008.
I.Small stocks
II.Long term bonds
III.Large stocks
IV.T-bills
A) I, II, III, IV
B) III, IV, II, I
C) I, III, II, IV
D) III, I, II, IV

Question

Quizplus · Accepted Answer

According to the historical returns from 1926-2008, the rankings from highest to lowest are:
I. Small stocks - 17.5%
II. Large stocks - 12.1%
III. Long term bonds - 5.5%
IV. T-bills - 3.8%
Therefore, choice C, which lists the assets in that order, is the best choice.

Rank the Following from Highest Average Historical Return to Lowest