Which portfolio has had the lowest average annual nominal rate of return during the 1900-2011 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

The portfolio of Treasury bills had the lowest average annual nominal rate of return during the 1900-2011 periods. This is because Treasury bills are considered to be one of the least risky investment options, with lower returns compared to stocks and bonds.

Which Portfolio Has Had the Lowest Average Annual Nominal Rate