Examining evidence of returns on common stocks and Treasury bills indicates that common stocks had
A)the higher rate of return and the greater risk.
B)the lower rate of return and the greater risk.
C)the lower rate of return and the less risk.
D)the higher rate of return and the less risk.

Question

Quizplus · Accepted Answer

Historically, common stocks have offered higher returns compared to Treasury bills, but with that higher return comes greater risk. Stocks are subject to market volatility, while Treasury bills, being government-backed securities, are considered much safer investments.

Examining Evidence of Returns on Common Stocks and Treasury Bills