Over the period of 1926 through 2012,the annual rate of return on _____ has been more volatile than the annual rate of return on _____.
A)large company stocks;small company stocks
B)U.S.Treasury bills;small company stocks
C)U.S.Treasury bills;long-term government bonds
D)long-term corporate bonds;small company stocks
E)large company stocks;long-term corporate bonds

Question

Quizplus · Accepted Answer

The annual rate of return on large company stocks has been more volatile than the annual rate of return on long-term corporate bonds over the period of 1926 through 2012. This is because stocks are considered riskier investments than bonds and their prices are more susceptible to market volatility and economic conditions. On the other hand, long-term corporate bonds are typically considered safer investments and their returns are more stable over time.

Over the Period of 1926 Through 2012,the Annual Rate of Return