Which of the following is correct?
A) Over a long time frame, stocks have performed better than long-term Treasury bonds.
B) Average stock returns are not an indication of what an investor may earn in any one year.
C) In some years, long-term Treasury bonds performed better than stocks.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

All the statements are correct. Over long periods, stocks have historically outperformed long-term Treasury bonds, but stock returns can be highly variable from year to year. There have indeed been years where long-term Treasury bonds outperformed stocks, highlighting the importance of diversification and understanding market fluctuations.

Which of the Following Is Correct