Based on historical performance, which one of the following investments is most apt to provide an average return of 10 percent a year between now and the year 2025?
A) U.S. Treasury bills
B) Corporate bonds
C) Stocks
D) Options
E) Zero-coupon bonds

Question

Quizplus · Accepted Answer

Historically, stocks have provided the highest average return over a long period of time compared to other investments such as bonds, Treasury bills, and options. Although stock prices can be volatile in the short term, over a long period of time, they have tended to increase in value, providing an average return of approximately 10 percent. Therefore, stocks are the most likely investment to provide an average return of 10 percent a year between now and the year 2025.

Based on Historical Performance, Which One of the Following Investments