Rank the following from highest average historical return to lowest average historical return from 1926 to 2017.
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 historical data from 1926 to 2017, small stocks have had the highest average return, followed by large stocks, long-term bonds, and T-bills. Therefore, the correct ranking from highest to lowest return is I, III, II, IV, which is represented by choice C.

Rank the Following from Highest Average Historical Return to Lowest