Which portfolio has had the lowest average annual nominal rate of return during the 1900 to 2014 periods?
A)Portfolio of small U.S.common stocks
B)Portfolio of U.S.government bonds
C)Portfolio of Treasury bills
D)Portfolio of large U.S.common stocks

Question

Quizplus · Accepted Answer

According to historical data, Treasury bills have had the lowest average annual nominal rate of return compared to other investment options during the 1900 to 2014 periods. This is because Treasury bills are considered a safe haven investment with lower risks and lower returns than other asset classes such as stocks and bonds.

Which Portfolio Has Had the Lowest Average Annual Nominal Rate