Which one of the following statements correctly applies to the period 1926-2016?
A) Large-company stocks earned a higher average risk premium than did small-company stocks.
B) The average inflation rate exceeded the average return on U.S. Treasury bills.
C) Large-company stocks had an average annual return of 14.7 percent.
D) Inflation averaged 2.6 percent for the period.
E) Long-term corporate bonds outperformed long-term government bonds.

Question

Quizplus · Accepted Answer

Long-term corporate bonds typically offer higher yields than long-term government bonds due to the higher risk associated with corporate debt, which can lead to better performance over extended periods.

Which One of the Following Statements Correctly Applies to the Period