Which of the following is correct?
A) Over a long time frame, stocks have performed better than long-term Treasury bonds.
B) Average stock returns are not an indication of what an investor may earn in any one year.
C) In some years, long-term Treasury bonds performed better than stocks.
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

Statement A is true as over the long term, stocks generally have higher returns than long-term Treasury bonds. 
Statement B is also true as average returns do not guarantee what an investor may earn in any particular year. 
Statement C is also true as some years, long-term Treasury bonds perform better than stocks, such as during times of economic uncertainty. Therefore, all the statements are correct.

Which of the Following Is Correct