Over a long period of time, common stocks have returned approximately twice as much as bonds; therefore, the amount accumulated in a stock fund relative to a bond fund over time would be:
A) twice as much.
B) less than twice as much.
C) more than twice as much.
D) less (more) than twice as much if volatility is lower (higher) than average.

Question

Quizplus · Accepted Answer

Stocks generally have higher returns than bonds, and due to the compounding effect, the accumulated amount in a stock fund would be more than twice as much as in a bond fund over a long period.

Over a Long Period of Time, Common Stocks Have Returned