Which statement is TRUE?
A) In the long run, stock returns are higher than bond returns.
B) Passive investments underperform active investments.
C) One can earn higher returns by investing in funds with high loading costs.
D) The efficient markets hypothesis only holds in the short run.

Question

Quizplus · Accepted Answer

Historically, over long periods of time, stocks have generated higher returns than bonds. However, this does not mean that stocks will always perform better than bonds in the short term. In fact, there are periods, such as during a recession, when stocks may underperform bonds.

Which Statement Is TRUE