Since 1960,the average annual return of the value-weighted market portfolio of U.S.stocks has exceeded that of one-year Treasuries by approximately 5%.In Canada,this number has been about ________.
A) 20% lower
B) 10% higher
C) 20% higher
D) 10% lower

Question

Quizplus · Accepted Answer

The question asks for the difference in average annual returns between the value-weighted market portfolio of US stocks and one-year Treasuries in Canada. The information given about the US market portfolio is that it has exceeded one-year Treasuries by approximately 5% annually since 1960. Therefore, we can infer that the average annual return of the value-weighted market portfolio of Canadian stocks is approximately 20% higher than Canadian one-year Treasuries, based on historical trends.

Since 1960,the Average Annual Return of the Value-Weighted Market Portfolio