The textbook provides a history of returns from 1950 through 1999 for four classifications of securities in the United States.Rank the average returns from the highest to lowest over this time period.
A)Large-company stocks,small-company stocks,3-month U.S.Treasury bills,long-term government bonds
B)Long-term government bonds,3-month U.S.Treasury bills,small-company stocks,large-company stocks
C)Small-company stocks,large-company stocks,long-term government bonds,3-month U.S.Treasury bills
D)Large-company stocks,long-term government bonds,small-company stocks,3-month U.S.Treasury bills

Question

Quizplus · Accepted Answer

Historically, small-company stocks have provided higher average returns than large-company stocks, which in turn have outperformed long-term government bonds and 3-month U.S. Treasury bills, reflecting the risk-return trade-off.

The Textbook Provides a History of Returns from 1950 Through